r/wallstreetbets • u/abishop717 • 1d ago

Discussion 5 rate cuts 😮

Post image
2.3k Upvotes

94% Upvoted

698 comments sorted by

View all comments

Show parent comments

69

u/DPMKIV 1d ago

We'll see what actually happens. I mean... they printed money when COVID hit to keep the US spending.

If this sell off starts triggering massive buying of off shore stocks due to unease in US stocks... they gotta do something to keep investors in US stocks.

264

u/spookyswagg 1d ago

Ya, but inflation was at 2% then.

Inflation is predicted to rise this year, 4%, next year by >4%

Rate cuts now would just make that way worse…

58

u/clapsandfaps 1d ago

Honestly do they have a choice?

Not to be a doomsayer, but with rising inflation (again) due to tariffs, probable layoffs due to reduced demand on american goods due to tariffs and combine that with high interest to fight the self-induced inflation, people will default, a lot. Even domesctically produced goods will be hit with inflation due to potash tariffs.

I’m seeing in my unqualified crystal ball, a depression happening.

1

u/Pleasant_Race2717 1d ago

If they print more money dollar will nosedive. With these tariffs demand for USD will go down, add billions in quantitative easing and you are set for disaster.