r/wallstreetbets 23h ago

Discussion 5 rate cuts 😮

Post image
2.2k Upvotes

676 comments sorted by

View all comments

Show parent comments

6

u/L4gsp1k3 21h ago

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.

1

u/vitunlokit 21h ago

ECB actually has inflation target as their only set goal.

1

u/L4gsp1k3 20h ago

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.

1

u/misspiggy123 20h ago

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…

1

u/misspiggy123 20h ago

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…