r/wallstreetbets • u/abishop717 • 3d ago

Discussion 5 rate cuts 😮

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2.4k Upvotes

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423

u/Emilio___Molestevez 3d ago

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

66

u/Various_Car8779 3d ago

He's obligated to step in when unemployment spikes

121

u/Shot-Maximum- 3d ago

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

16

u/Various_Car8779 3d 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

-2

u/KissmySPAC 🦍🦍 3d ago

Not with inflation expectations being high.

2

u/Dr-McLuvin 3d ago

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

-1

u/KissmySPAC 🦍🦍 3d ago

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

1

u/Dr-McLuvin 3d 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 🦍🦍 3d ago

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