r/wallstreetbets 1d ago

Discussion 5 rate cuts 😮

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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…

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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.

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u/Massive-Opposite-705 1d ago

What the end goal if you print more money for a bail out just continue kicking the can down the road. It’s like we’re building a dam that gets weaker each renovation and gets more water behind it. The longer you keep repairing it with tape and sticks the bigger the flood will be when it collapses. Let pain hit when it is supposed to hit rather than pushing it to the next generation double

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u/InclementBias 1d ago

everyone said this during covid prints and then during post 2008 QE and by all accounts JPow was landing the plane in insane crosswinds and we were so close while coping with the pain after all of us pointed and said it was impossible.. then this happens.

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u/Massive-Opposite-705 1d ago

Jpow was doing a great job it sucks that he doesn’t get to close his tenure the way it could have gone. If he pulled off the soft landing it would’ve been incredible. Now we’ll never know