r/wallstreetbets • u/abishop717 • 1d ago

Discussion 5 rate cuts 😮

Post image
2.3k Upvotes

94% Upvoted

698 comments sorted by

View all comments

Show parent comments

62

u/Various_Car8779 1d ago

He's obligated to step in when unemployment spikes

119

u/Shot-Maximum- 1d ago

But what do you do when unemployment is high and inflation is high at the same time?

16

u/Various_Car8779 1d ago

Market believes fed will choose to deal with unemployment/growth. The fed doesn't think a wage price spiral is possible and neither do I. Workers can't bargain without unions

-4

u/KissmySPAC 🦍🦍 1d ago

Not with inflation expectations being high.

4

u/Dr-McLuvin 1d ago

Bond markets are expecting 2% inflation this year what the fuck are you guys talking about.

-3

u/KissmySPAC 🦍🦍 1d ago

Michigan survey. Wtf are you talking about. Bond market doesnt mean shit.

1

u/Dr-McLuvin 1d ago

lol the f are you talking about. Consumers sentiment is the absolute worst predictor of inflation we have.

https://www.clevelandfed.org/-/media/project/clevelandfedtenant/clevelandfedsite/publications/economic-commentary/2021/ec-202119-whose-inflation-expectations-best-predict-inflation/ec-2021-19.pdf

1

u/KissmySPAC 🦍🦍 1d ago

I dont think that matters in a global trade war. What matters are peoples expectations and who is buying the debt.

1

u/Redditfortheloss 1d ago

Bro most of the people on this sub only understand red and green but spout like they have an Econ degree it’s a fuckin joke now.