r/wallstreetbets • u/abishop717 • 1d ago

Discussion 5 rate cuts 😮

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u/CoughRock 1d ago

who's making these prediction for rate cut ? didn't jpowell explicitly said he's going to wait and see ?

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u/DPMKIV 1d ago

It's called a FED bailout...

It theoretically should ease the free fall to prevent an all-out crash.

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u/legbreaker 1d ago

Yep creates a bunch of free money chasing after the same few workers and limited resources (we will paying way higher prices for all supplies, minerals, wood, components etc).

This will be a unique era where we will have to take on much more debt just to be able to keep up current production levels. 

Contrasted to before where people take on debt to increase production capacity.

This will lead to pretty bad inflation and stagnant or decreasing GDP.

Are you tired of winning yet?