Posted on 09/18/2024 11:10:59 AM PDT by Aquamarine
The Federal Reserve cut interest rates by 50 basis points Wednesday, the central bank’s first rate reduction following a two-and-a-half year crusade against inflation that raged in the wake of the pandemic.
The new federal funds rate is 4.75 percent to 5 percent, a jumbo rate cut that signals the Fed’s confidence that its war against inflation is coming to an end.
The pandemic hit the economy hard, scrambling supply chains, shuttering stores and leading to layoffs of millions of Americans. When the world started to reopen in the spring of 2021, however, the economy went into overdrive.
The consumer price index (CPI), an inflation measure that tracks a handful of goods and services, soared above ideal levels. Although Biden administration officials initially waived off the increase as “transitory,” prices kept rising, and inflation hit the highest rate since 1982 in November 2021.
The Fed incrementally increased interest rates from near zero in March 2022 to a range of 5.25 to 5.5 percent last July as it battled rising inflation, which peaked at 9.1 percent in June 2022.
(Excerpt) Read more at thehill.com ...
Just in time for election interference attempting to bolster comrade Kamala
The 50bp cut will do little to nothing to prompt consumers who are already strapped with debt to start buying again.
It doesn’t matter that rates are lower if you’re already tapped out and struggling to pay down debt.
Gee it must be an election year LOL😆
Yuge!
But, recession fears...
Azz Hats
Precisely! The job market is in a nosedive, but with the Deep State morons running the BLS, it may be a year before they issue a "correction" with the real numbers.
It was the responsible thing to do. Economy is in serious trouble.
Who is the President today?
Fore up the printing presses, let’s get the credit money flowing again...
Hold on tight, looks to he wild ride ahead.
The market already assumed this cut and the stocks have been priced accordingly for the past year.
This is done solely to try to help the Harris/Biden/Obama/WEF/Deep State campaign. Election interference.
There goes my savings rate, not that it was even close to keeping up with inflation.
Easy money, just like Zero’s administration.
Which led to inflation. Just like the Rona spending debacle.which led to the Brandon administration and 20% cumulative inflation.
Anyone with a trillion interest payment must be broke.
Solution?
Either cut spending or we stop paying taxes.
5.56mm
Inflation will be out of control due to factors not under the control of Congress and the President. Inflation is still out of control in reality, all the Biden Administration and The Fed have done is manipulate the figures to make things look good.
We actually need a recession to flush all unnecessary liquidity out of the system along with debt. And we need to the House to produce a real actual and factual budget so people can truly see what a mess we are in Fiscally. No more Continuing Spending Authorizations of 1200 pages no one has read.
The reality is The Fed should have raised interest rates another 100 Basis points.
But they can’t because they are boxed in and Interest rate expense on the debt is already over $1 Trillion a year, headed even higher since spending cannot be controlled.
The inflation was due to Government spending & policies not due to low interest rates. The Fed is a partisan organization with no solutions, bouncing from one imposed problem to the next.
I can’t imagine prices can go any higher than they are right now. Groceries, insurance for home and auto are two that already are at the limit. It’s so bad with auto insurance that some are not getting it at all because they can’t afford it.
The stock market is really the only positive in this economy. Another historic high this week.
“the economy went into overdrive.”
Citation needed.
This is a gift for Wall Street.
It is also a big FU to Main Street, U.S.A.
Well, there is a somewhat identifiable figurehead, but just who (if anyone) is really running things is an open question.
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