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Nikhil Mehta's avatar

Makes me wanna cry

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HeldFast's avatar

If a cut would help employers to hire and create jobs then I hope it happens. As Peter has detailed, stagflation is very real with inflation and unemployment...

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Peter Nayland Kust's avatar

A cut will lower the federal funds rate and will encourage Wall Street to bid market interest rates lower.

With corporate yields and small business credit rates lower, the cost of investment capital is reduced. Lower yields will also move some investment funds out of fixed income assets like Treasuries and into equity.

Broadly put, the amount of capital available for businesses to expand operations will increase. That will result in job creation in at least some sectors.

If businesses do not increase investment at least somewhat the economy is in far worse shape than the data suggests.

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Gbill7's avatar

We can count on Peter to give us the actual facts! Powell is going to have to face them at some point - although he’s already made such a clueless fool of himself that he will be vilified in financial history.

Peter, a few weeks ago Trump tweeted that he made have to declare a “housing crisis” in autumn - which is coming up fast. That made enable Trump to do something drastic regarding mortgage interest rates. Are you thinking this is becoming more likely to happen?

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Gbill7's avatar

You never know who, or how many, or how influential your readers are. You did your part, you fought the verbal fight, and you are entitled to savor the fact that once again, you were RIGHT, Peter.

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Gbill7's avatar

By the way, congratulations to you, Peter, on triumphing over evil nemesis Fani Willis:

https://www.startribune.com/georgia-supreme-court-declines-to-hear-fani-willis-appeal-of-her-removal-from-trump-election-case/601475104?utm_source=copy

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Peter Nayland Kust's avatar

President Trump is the one who triumphed. I and others who chronicled the Democrats lawfare efforts against him were merely the ones calling balls and strikes.

Although it is nice when a call survives the instant replay review!

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Flippin’ Jersey's avatar

And why wouldn’t he push a 50 bp cut? The one and only reason is because it would help Trump too much. Powell is a partisan hack who demonstrates it time and again through inaction or, in this case, minimal action.

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