r/wallstreetbets • u/abishop717 • 1d ago

Discussion 5 rate cuts 😮

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u/spookyswagg 1d ago

Inflation is predicted to rise to 4% this year and >4% next year

Without accounting for retaliatory tariffs or potential rate cuts.

Why would Jpow go and make that worse by lowering rates? Just to save the stock market?

What is more important for the Fed, inflation or stock prices?

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u/Grand_Ad5229 1d ago

Fed only saw cumulative inflation ticking up .3 percent this year on PCE from 2.5 to 2.8 percent. Markets think they’ll try and save jobs as long as it doesn’t get out of control.

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u/spookyswagg 1d ago

That’s old data. Deutsche bank predicts 4% inflation this year

https://www.barrons.com/livecoverage/trump-tariffs-april-2-liberation-day-news/card/how-tariffs-will-affect-economic-growth-inflation-cdOW5Egu0DWUb8HGeD7c

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u/Jumpy-Importance 1d ago

Old data? It’s current data. You’re taking future projection from a company we’re currently putting 20% tariffs on. Can’t see the conflict here 🥱