r/wallstreetbets • u/abishop717 • 1d ago

Discussion 5 rate cuts 😮

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u/CoughRock 1d ago

who's making these prediction for rate cut ? didn't jpowell explicitly said he's going to wait and see ?

766

u/DPMKIV 1d ago

It's called a FED bailout...

It theoretically should ease the free fall to prevent an all-out crash.

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u/CoughRock 1d ago

adp non-farm report just came out. Much higher non-farm employment than predicted. We are screwed in term of rate cut. High unemployment and high core inflation gave jpowell easy excuse for pause rate and wait and see.

it's going to take a miracle to see rate cut now.

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u/Ok-Instruction830 1d ago

More tariffs = lower rates. It’s one hack economists don’t want you to know 

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u/Much-Creme1362 1d ago

Not if they drive up inflation.

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u/Karimadhe 1d ago

Found the parrot.

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u/letmeshowyou 1d ago

Found the person who doesn’t know simple economics.

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u/TruEnvironmentalist 1d ago

Simple math, lower interest rates dont mean jack if you have to pay 20% more for the product up front.

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u/Much-Creme1362 1d ago

It's literally how rates work. The federal reserve has a DUAL mandate to keep inflation low and the economy growing. If inflation is up, they raise rates. If growth is down, they lower them. If both are up, they can't do jack shit.