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 ?

771

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/ric2b 1d ago

The best move for the Fed right now would be to keep rates where they are and force congress to reverse the tariffs, anything else is way too damaging for lowered rates to fix.

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u/Gh0StDawGG 1d ago

Tariffs not going anywhere. How the fed fixes 🥭mess will be interesting.

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u/adrr 1d ago

Raise rates to drain more dollars from the market.

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u/AGI2028maybe 1d ago

If Powell even hinted at a rate increase the market would literally be down 10% within a second.

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u/dqdg 1d ago

Well, we know that is not going to happen. Its all up to the Fed, whom I am hoping is not influenced by the WH (ugh)

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u/ric2b 1d ago

Well, we know that is not going to happen.

Some republicans are already talking about it, don't be so sure.

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u/DPMKIV 1d ago

Agreed, the FED really has no reason to do anything here.

They should and likely will let the new norm settle and move to QE and such once the damage is done.

What is done is done, and this is a world we are going to have to figure out how to operate in now.

This whole thing really highlights how our branch's checks-n-balances process that was built in is failing. Something with such a global impact should have been approved by the House and Senate. We see our house and Senate are 2 steps behind the executive branch's public addresses.

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u/ric2b 1d ago

The checks and balances are mostly bullshit myths propped up by tradition, as we're now seeing.

The system is very fragile, favors the executive way too much and mathematically polarizes to only two options.

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u/ironforger52 1d ago

Ain't happening.  They need a 2/3 majority to override Trumps veto

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u/ric2b 1d ago

Democrats will definitely go along with it so you only need about 1/3 of republicans.

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u/ironforger52 1d ago

Republicans are not defying trump.  The vast majority is locked step with trump

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u/ric2b 1d ago

Some of them are cracking already. We'll see.