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/Bcider 1d ago

Yes, let it crash. Hard reboot the economy. Kicking the can since 2008 has screwed everyone.

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u/matthewkulp 1d ago

It's not a computer you just restart and it works different. You have to actually have a coherent theory of macroeconomics that is supported by evidence in order to make good policy.