r/wallstreetbets • u/abishop717 • 1d ago

Discussion 5 rate cuts 😮

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596

u/whitepepsi 1d ago

Why would the fed cut rates?

The market can be fixed if Krasnov just dropped his tariffs. The fed cuts rates when the economy is in trouble and can’t be resolved by other means.

This is like me choking my neighbors dog and the police giving my neighbor another dog rather than just tasing me.

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u/elonzucks 1d ago

"Why would the fed cut rates?"

Because the economy will be very fucked and it's their only tool

21

u/Icommandyou Probably Smart Probably Idiot 1d ago

Won’t rate cuts increase inflation which will add to tariff prices. Why will Feds go to increasing inflation route

3

u/poginmydog 1d ago

Hyperinflation > deflation

4

u/Protonic-Reversal 1d ago

Define greater than here. Is it more better or more worse?

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u/elonzucks 1d ago edited 1d ago

Only when the economy is healthy. The economy will be so fucked that they will try to bring it back with low rates...inflation will come back once the economy recovers.

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u/Protonic-Reversal 1d ago

But if the tariffs are still in effect when rates lower aren’t we severely fucked?

1

u/elonzucks 1d ago

Yes, that means the economy is severely fucked. Lowering rates is a symptom.Â