r/investing • u/Mindless_Designer519 • 2d ago

What do you think about Powell's decision?

Hey everyone,
I wanted to hear your thoughts on Powell's recent decision not to cut interest rates.

  • Do you think it's the right move considering the current economic conditions?
  • How do you see this impacting the markets in the short and medium term?
  • Are you expecting a rate cut later this year, or is the Fed likely to hold for longer?

Curious to hear your takes—especially from those following macro trends or managing portfolios based on rate expectations.

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u/wha2les 2d ago

Powell is the only person I trust in the US govt right now....

With their dual mandate, Powell would choose recession every time over inflation/ stagflation.

So with all these absurd tariffs, he is not going to cut rates... and depending on the inflation, might raise rates.

Once inflation starts becoming 2% (even if it is during recession/ depression), they will start lowering rates.

So it all makes sense.

How would it affect your portfolio? not well. but it isn't doing well now anyways!