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/DickFineman73 1d ago

Usually recessions are deflationary, and turning on the money printer partially counteracts that.

Tariffs, and a recession caused by tariffs, isn't fundamentally deflationary - it's inflationary. We're looking at potentially 5-10% inflation across the board without the Fed lifting a finger... and if the Fed does try to bail anyone out with a stimulus print or loan, that just adds more gas to the inflation fire.

Donald Trump isn't even smart enough to crash the economy properly.