5 rate cuts 😮

[u/abishop717]

[u/Emilio___Molestevez]

JPow is neither obligated nor inclined to clean up Don's mess. $SPY going under $500 after he talks.

[u/Various_Car8779 → u/Emilio___Molestevez]

He's obligated to step in when unemployment spikes

[u/d1stor7ed → u/Various_Car8779]

That is not true. Their primary responsibility is to keep inflation at 2%. This is why stagflation is the worst economic configuration.

[u/misspiggy123 → u/d1stor7ed]

2% is a somewhat arbitrary target that was established. They can change this acceptable target rate for price stability if the new economy demands it. After all, the current administration is trying to completely alter the global economy….

[u/L4gsp1k3 → u/misspiggy123]

The problem, is that if they choose to change the target, the whole markedet will loose some trust in the central bank.
You can't just change your course because that has always been the target for the economy, and why change it now, and not when the 2% wasn't achievable before, why not change it back then.
ECB has already answer that question, they are not changing course, otherwise they would have done it before.

[u/vitunlokit → u/L4gsp1k3]

ECB actually has inflation target as their only set goal.

[u/L4gsp1k3 → u/vitunlokit]

Yes, that's correct. In the EU we have too many people who believe that the stock market is more important than ECBs main goal.

[u/misspiggy123 → u/L4gsp1k3]

It hasn’t always been the target, it was established post GFC. I’m not saying the current administration’s strategy is good and I definitely think they are losing faith on the global scene with our allies. It’s impossible to predict the impacts if they stay the course on this…

[u/misspiggy123 → u/L4gsp1k3]

It hasn’t always been the target, it was established post GFC. I’m not saying the current administration’s strategy is good and I definitely think they are losing faith on the global scene with our allies. It’s impossible to predict the impacts if they stay the course on this…