r/wallstreetbets • u/abishop717 • 23h ago

Discussion 5 rate cuts 😮

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2.2k Upvotes

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1.6k

u/Rrrrandle 23h ago

The feds job isn't to save the stock market, it's to keep inflation and unemployment low. Lowering rates now does nothing for either.

301

u/Thatineweirdguy 23h ago

Thank you for a sane response.

27

u/adrr 21h ago

Did someone tell JPowell that?

136

u/ChaseballBat 20h ago

TBH JPowell is sane. I respect him for not bowing down to that idiot.

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u/Tha_Sly_Fox 17h ago

A journalist asked him about a trump quote and Powell literally said “I don’t respond to comments made by politicians” and then reiterated the Feds mandate

What a boss.

50

u/Rgarza05 19h ago

I mean I was confused why Biden kept him on but he has proven to know what he is doing. He has lowered inflation without a recession.

12

u/Unfair_Inspection_59 18h ago

I bet this week he’s all “fuck this; I’m out.”

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u/skoalbrother 11h ago

I hope he doesn't because MTG is his replacement

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u/More-Ad-5003 9h ago

Is this real ? 😅

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u/DickFineman73 8h ago

No - it'll end up being someone even more stupid.

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u/fuckdonaldtrump7 19h ago edited 19h ago

Lmao the Pres doesn't have control to dismiss the Fed chair. They can nominate in conjunction with the Senate.

Edit: my bad forgot his term was up in 2022 and Biden could have replaced.

19

u/JayDub1565 19h ago

Biden had the opportunity to appoint someone else in 2022, but instead he reappointed JPow. It was about dismissing him

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u/fuckdonaldtrump7 19h ago

Ahh I see his term was up under Biden. Apologies

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u/metalpig0 16h ago

Exactly. They have a “dual mandate” but it’s propaganda. Their real mandate is to maintain high asset prices on behalf of the capitalist class.

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u/2squishy 21h ago

Yeah the focus is probably avoiding stagflation at this point.

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u/george_pubic 20h ago

If they follow the 70s example of stagflation, rate cuts are almost certainly not in the cards. Mass unemployment hasn't hit yet and inflation is probably about to skyrocket given historically how tarrifs work. The only way rates get cut is if Peach Man fires J Pow and replaces him with a someone willing to cut rates in spite of inflation. Which, is absolutely a distinct possibility.

Calls on inflation. Puts on J Pow's upholstery. 

21

u/Financial-Society937 19h ago

No its not a distinct possibility. Even if trump tried to fire powell, which he technically cant and powell can refuse to go, he needs to pick someone on the current board to lead the Fed. He can't just throw kid rock or corey feldman or whoever he wants in there

40

u/2squishy 19h ago

Ok but you're applying laws to this administration, it may get reversed in court a year later but they'll do it.

1

u/2squishy 19h ago

Oh my lord please don't remind him about interest rates. If that happens we're even more fucked. Anything besides TIPS that could weather that storm?

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u/Reasonable_Ticket_84 21h ago

The stock market, modern day CEOs and American business in general literally cannot survive without near 0 rates. They have all become drunk and incompetent after a decade of it.

The worse part is, we are all super fucked because none of us can stop it and they are taking those loans against our future to pay for their yachts now.

26

u/Trotter823 20h ago

We’ve been fine for the last few years on non-zero rates. The only difference is not every dumbass tech ideas get funded which I’d argue is a good thing. What CEOs can’t adapt to is all this wishy washy back and forth trade policy.

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u/PantsMicGee 🦍🦍🦍 12h ago

This is a decent response to the drivel about not being able to survive with a modcrum of rates. 

38

u/dreamerOfGains 22h ago

Get your logic outta here. 

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u/-boatsNhoes 21h ago

Jobs are up. Inflation was meh last month. There will be likely 2 cuts. No more. This shit is pure copium from MSM to try to get retail to buy in .... But everyone ported in yesterday

7

u/defeated_engineer 21h ago

Lowering rates help with unemployment. Cheaper to invest and grow.

12

u/Bludypoo 20h ago

causes inflation

2

u/JonFrost 21h ago

Ooo so we are setting up for disappointment if JPow stays the course? 🤔

1

u/iknowverylittle619 20h ago

Then May CPI comes in hot due to tariffs. FED can't cut rate. Bols fuqed.

1

u/Leech-64 20h ago

Thats not entirely correct. Tariffs do make the dollar stronger ( or at least make its rate of decrease slower), and so fed cuts limit this effect by making it weaker again so people will spend it.

1

u/Child_of_the_Hamster 20h ago

B-b-but my copium 😫😭

1

u/ChaseballBat 20h ago

It is literally like this every single time. It is like the people only look at the "analysts" response. Not the guy who is speaking. This country is just absolutely fucked.

1

u/The_WiiiZard 20h ago

It would theoretically help with unemployment, which hasn’t been a problem until very recently and still isn’t really that bad.

1

u/iBoMbY 20h ago

This still pretty much sums the FED up: https://www.youtube.com/watch?v=wz-PtEJEaqY

1

u/Desperate_Concern977 18h ago

I mean don't get me wrong, I'd love to refinance my mortgage but 5 rate cuts during a trade war is gonna make inflation go wild.

1

u/InterestingVoice6632 18h ago

Lowering rates has positive effects on the job market. What kind of flat earth theory is this?

2

u/Rrrrandle 17h ago

Lowering rates is gonna do jack shit for the job market with these tariffs in effect.

1

u/LastAffect7456 17h ago

I said the same thing when this sub came out and everyone downvoted me, so I just deleted it. Glad someone came to make the point again! Fuckin Downvoting morons!

1

u/Adulations 17h ago

Lowering rates right now makes 0 sense

1

u/After-Panda1384 16h ago

If the stock market drops a lot, that impacts gdp and unemployment. Every 10% drop of the s&p500 lowers the GDP by roughly 1%.

1

u/LifeguardEuphoric286 15h ago

they raise unemployment to keep inflation low

1

u/Amannamedbo 11h ago

He also made a statement today that he won’t do anything about rates until we see how tariffs play out.