Off-Topic Stock Market & Crypto Discussion

[mr.h]

Especially when they could have done 25 this month, next, and so on.

Powell said he did 50bp to show is he in front of any slowdown in the economy. I think they go 25bps the rest of the way..

 

[JD08]

Powell said he did 50bp to show is he in front of any slowdown in the economy. I think they go 25bps the rest of the way..

I hope more isn't necessary.

 

[90scane]

That's a lot and means things are looking really bad.

Only time will tell. They have already said expect 1 pt off by year end. If unemployment keeps getting worse and inflation remains on the downward path, .50 likely isn’t enough. If unemployment levels off and inflation gets hotter in Q4, they could old off.

 

[mr.h]

I hope more isn't necessary.

CNBC

Risk of downturn not heightened following rate decision, Powell says​

Federal Reserve Chair Jerome Powell does not see the risk of an economic downturn being “elevated” following the super-sized cut.

“I don’t see anything in the economy right now that suggests that the likelihood of a recession, sorry, of a downturn, is elevated,” he said.

“I don’t see that,” he continued. “You see growth at a solid rate. You see inflation coming down. You see a labor market that’s still at very solid levels. So, I don’t really see that now.”

 

[90scane]

If growth is at a solid rate and jobs are solid, why cut?

 

[mr.h]

08:30 USD Continuing Jobless Claims 1,829K 1,850K 1,843K
08:30 USD Current Account (Q2) -266.8B -259.0B -241.0B
08:30 USD Initial Jobless Claims 219K 230K 231K
08:30 USD Jobless Claims 4-Week Avg. 227.50K 231.00K
08:30 USD Philadelphia Fed Manufacturing Index (Sep) 1.7 -0.8 -7.0

Jobless claims down
Philly Fed Manufacturing up
Strong print….

 

[mr.h]

If growth is at a solid rate and jobs are solid, why cut?

to maintain economic growth and address inflation
Being proactive and not reactive
This is going to help the housing market…rates have already gone down

 

[90scane]

to maintain economic growth and address inflation
Being proactive and not reactive
This is going to help the housing market…rates have already gone down

Lowering rates doesn’t address inflation. I believe they are still doing QT which does address inflation or counter balances the cut.

The housing market could see massive inflation if they keep cutting and their unemployment targets become reality.

 

[mr.h]

Nice day..

 

[mr.h]

Lowering rates doesn’t address inflation. I believe they are still doing QT which does address inflation or counter balances the cut.

The housing market could see massive inflation if they keep cutting and their unemployment targets become reality.

This was the first rate cut, let’s not jump the gun. The Fed feels it’s a positive to the economy.