Powell says Fed will likely cut rates cautiously given persistent inflation pressures

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2 thoughts on “Powell says Fed will likely cut rates cautiously given persistent inflation pressures

  1. Does anybody remember when Jerome Powell started quantitative tightening to get interest rates back to the healthy mean after years of QE, and then Trump & the stock market threw a fit and made him reverse course? Circa 2018-2019.

    Anyway, I would be happily surprised if something similar doesn’t happen regarding cutting interest rates too fast.

    The rich will get richer, but inflation will take out the poor. Like what happened following COVID, but worse because supply chains are not in a contracted state; there is no stimulus going out; and there is no longer a precarious QE bubble ready to pop when the wind changes direction.

    1. Agreed, 100%. I think we’re experiencing the “soft landing” right now. Everyone is living it. People found jobs who actually wanted to work. Now the jobs market has tightened. If you’re not budgeting, saving, and INVESTING in good assets you’ll be trouble during the Trump administration. Investing combats inflation. Without assets you can’t get ahead anymore. It’s hard to 9-5 your way out of the situation.

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