Feds cut interest rates 12/18/24

[jerryskids 6,576]

Down a quarter point.  Interesting, going into a Trump tenure, although they guided to two vs. four additional cuts for 2025.

Quote

The Federal Reserve cut interest rates by a quarter point on Wednesday, bringing the target range to 4.25% to 4.5%. The central bank revised its outlook for rate cuts in 2025, however, indicating that there will be two reductions. That’s down from the four forecast in September. Fed Chair Jerome Powell said that the central bank would be looking for progress on inflation, noting, “We have been moving sideways on 12-month inflation.”

Powell thinks that consumers are feeling the effect of high prices, rather than of high inflation.

“We understand very well that prices went up by a great deal, and people really feel that, and it’s prices of food and transportation and heating your home and things like that. So there’s tremendous pain in that burst of inflation that was very global,” he said. “Now we have inflation itself is way down — but people are still feeling high prices — and that is really what people are feeling.”

Powell added that the best solution for this is for the Federal Reserve to continue working to get inflation back down to its target so wages can catch up, ultimately restoring consumers’ good feelings about the economy.

— Lisa Kailai Han

https://www.cnbc.com/2024/12/18/fed-meeting-live-updates-traders-await-december-interest-rate-cut.html

[Cdub100 3,842]

The fed is between a rock and a hard place. Cut rates and inflation goes up. Keep rates high unemployment goes up and the economy struggles.

The other problem is people figured out that borrowing money is cheap when rates are down. Keeping rates up will hurt people with loans (not just mortgages). Sure they can service them for a while but eventually they will run out of money.

And in all the debt, private commercial and government...

We are in big trouble...

Slowly.... than all at once.

[easilyscan 865]

1 minute ago, Cdub100 said:

The fed is between a rock and a hard place. Cut rates and inflation goes up. Keep rates high unemployment goes up and the economy struggles.

The other problem is people figured out that borrowing money is cheap when rates are down. Keeping rates up will hurt people with loans (not just mortgages). Sure they can service them for a while but eventually they will run out of money.

And in all the debt, private commercial and government...

We are in big trouble...

Slowly.... than all at once.

That about covers it.  

 

[Hardcore troubadour 14,956]

6 minutes ago, Cdub100 said:

The fed is between a rock and a hard place. Cut rates and inflation goes up. Keep rates high unemployment goes up and the economy struggles.

The other problem is people figured out that borrowing money is cheap when rates are down. Keeping rates up will hurt people with loans (not just mortgages). Sure they can service them for a while but eventually they will run out of money.

And in all the debt, private commercial and government...

We are in big trouble...

Slowly.... than all at once.

Yes. This is the mess that has been percolating the last four years. Bidenomics has brought us to this. People living on credit at high rates. Especially since all the jobs numbers are bullshitt and all he’s really been “creating” are more unnecessary government jobs. 

[lickin_starfish 1,893]

 

[thegeneral 2,928]

It will all be fixed by Trump and his billionaire team! Groceries will be cheaper, no more wars, the greatest unemployment you have ever seen. It will really be tremendous and will happen fast!

[jerryskids 6,576]

6 minutes ago, thegeneral said:

It will all be fixed by Trump and his billionaire team! Groceries will be cheaper, no more wars, the greatest unemployment you have ever seen. It will really be tremendous and will happen fast!

I was trying to have a serious discussion.  You, not so much, you continue to be a troll.   

[thegeneral 2,928]

Just now, jerryskids said:

I was trying to have a serious discussion.  You, not so much, you continue to be a troll.   

All these things are straight from Trump’s mouth pretty much for what that’s worth. Not sure what to tell you. You mentioned going into Trump’s run. 

Yeah interest rates were cut as the Fed has been talking about all year. They indicated less next year. What do you want to discuss? 

[Cdub100 3,842]

31 minutes ago, Hardcore troubadour said:

Yes. This is the mess that has been percolating the last four years. Bidenomics has brought us to this. People living on credit at high rates. Especially since all the jobs numbers are bullshitt and all he’s really been “creating” are more unnecessary government jobs. 

It's a problem that has been happening for a long time. It's gotten worse under biden and the money printing. Trump had a few months to blame for that too. 

Truefully both parties are to blame. Both spend too much money. Both increase the debt ceiling. 

We are focked.

[easilyscan 865]

3 minutes ago, Cdub100 said:

It's a problem that has been happening for a long time. It's gotten worse under biden and the money printing. Trump had a few months to blame for that too. 

Truefully both parties are to blame. Both spend too much money. Both increase the debt ceiling. 

We are focked.

Why would anyone be worried about this ?

https://www.imagebam.com/view/MEYA19O

 

[Cdub100 3,842]

1 minute ago, easilyscan said:

Why would anyone be worried about this ?

https://www.imagebam.com/view/MEYA19O

 

Totally fine We will just mint a 5 trillion dollar coin. 

[easilyscan 865]

2 minutes ago, Cdub100 said:

Totally fine We will just mint a 5 trillion dollar coin. 

That's a good idea. Or, we just continue to practice MMT.

“anything that is technically feasible is financially affordable,” because a government that creates its own currency can borrow in that currency & then pay off the resulting debt by creating more of it. 

Nothing but blue skies..........

 

[The Real timschochet 6,447]

In the link you posted, Powell is quoted as saying people are feeling the effects of high prices rather than high inflation. 
 

My serious question: what’s the difference? 

[Maximum Overkill 1,741]

12 minutes ago, Cdub100 said:

Totally fine We will just mint a 5 trillion dollar coin. 

And give it to Ukraine 

[iam90sbaby 2,494]

45 minutes ago, thegeneral said:

It will all be fixed by Trump and his billionaire team! Groceries will be cheaper, no more wars, the greatest unemployment you have ever seen. It will really be tremendous and will happen fast!

Whatever it is, it’s going to be a lot better than this joke of an administration we have now. Move along cuck.

[kutulu 1,659]

 

[thegeneral 2,928]

50 minutes ago, iam90sbaby said:

Whatever it is, it’s going to be a lot better than this joke of an administration we have now. Move along cuck.

I hope so. I doubt it. One thing that is for sure you will lap it up like a fat kid with a bucket of pudding.

[supermike80 1,810]

I carry no debt outside of a small amount left on a fixed rate mortgage and car loans.

I do have savings. So this cut sucks 

[MLCKAA 546]

2 hours ago, Cdub100 said:

 

Slowly.... than all at once.

What does your sex life have to do with interest rates?

[The Phantom's Phantom 253]

This is a problem that started 40 years ago.  Major negative events were 911 and the Afghanistan and Iraq wars, the 2008 collapse and tarp, then covid.

Nobody can fix it.

[jbycho 605]

4 minutes ago, The Phantom's Phantom said:

This is a problem that started 40 years ago.  Major negative events were 911 and the Afghanistan and Iraq wars, the 2008 collapse and tarp, then covid.

Nobody can fix it.

Nobody can help fix you from being broke. Agreed.

I'm loving life. 

[lickin_starfish 1,893]

Looks like the bankers are setting up a crash. All they need now is a catalyst to blame it on. Maybe a world war, Bird Flu pandemic, or an alien invasion? All three are possibilities at this point.

https://substackcdn.com/image/fetch/w_1456,c_limit,f_webp,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F533be3ab-6de2-46a5-a4b7-e5298ebf2053_782x430.png

[IGotWorms 4,057]

13 minutes ago, The Phantom's Phantom said:

This is a problem that started 40 years ago.  Major negative events were 911 and the Afghanistan and Iraq wars, the 2008 collapse and tarp, then covid.

Nobody can fix it.

No it was all Biden and nothing bad ever happened before 2020

[Cdub100 3,842]

1 hour ago, MLCKAA said:

What does your sex life have to do with interest rates?

That would be non existent 

[The Real timschochet 6,447]

1 hour ago, Cdub100 said:

That would be non existent 

Yeah well sorry but you should know that Holocaust denial doesn’t really turn a lot of girls on. 

[MLCKAA 546]

5 hours ago, The Real timschochet said:

Yeah well sorry but you should know that Holocaust denial doesn’t really turn a lot of girls on. 

Is @Cdub100 an actual denier or is that just good ol’ GC hyperbole?  Like “MLCKAA’s cack will kill you” when it actually would just leave you pretty sore the next day?

[The Phantom's Phantom 253]

Also it's "the Fed" not the feds.

[Maximum Overkill 1,741]

8 hours ago, IGotWorms said:

No it was all Biden

Which Biden? Because Pedo Joe left office about 2 years ago and is now eating Jello in a Delaware Old Age Home.