r/wallstreetbets • u/abishop717 • 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/inb4ElonMusk As Featured on CNBC Once 📺 1d ago

I thought potash was exempted in an EO

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u/clapsandfaps 1d ago

It wasn’t, then it was. Hard to keep track.

What potash tariffs are in place right now? Canadian potash imports into the U.S. not covered by CUSMA are currently subject to 10 per cent tariffs and that is where they will remain for now.

How much of that is not covered, who knows.

https://thestarphoenix.com/business/what-you-need-to-know-about-tariffs-on-potash

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u/inb4ElonMusk As Featured on CNBC Once 📺 1d ago

I’m assuming they’re going to start importing a lot from Belarus and Russia. Potash prices still up about 5% over the past month.