Beating around the bush, the Fed and the president are at odds I believe because of ideology. A let’s look and see or play offense and attack the economy. The president has lost some battles but bottom line he wins some wars.
The betting markets are putting their money on another cut in December. Can you explain the disconnect? All of this is Way above my pay grade and I lean heavily on you to help me make it make it sense for a lay(wo)man like me…
In theory, the Fed is guided by data and sound economic thought.
In reality, the Fed is guided by the whimsy of the Fed Chair, who in this case is an unquestioned blithering idiot.
Still, December is a long way off. If employment strengthens, the impetus for a rate cut esses. If inflation surges, rate cuts turn into rate hikes. If conditions stay the same, Powell has little choice but to cut, even though he doesn't want to.
What betting markets and Wall Street predict for a December rate cut now is pretty much meaningless. Once we get into December, that's when those projections become meaningful.
Powell increasingly strikes me as being like Biden: insulated from reality, clueless, uncomprehending. Surely there must be some financial geniuses left on Wall Street who understand the situation as well as you do, Peter. Are they going to play this in ways that make them richer, all the while seeming to “go along” with the Fed’s narrative? The rest of us are going to be left without a musical chair to sit on when the music stops. Disturbing.
Beating around the bush, the Fed and the president are at odds I believe because of ideology. A let’s look and see or play offense and attack the economy. The president has lost some battles but bottom line he wins some wars.
The betting markets are putting their money on another cut in December. Can you explain the disconnect? All of this is Way above my pay grade and I lean heavily on you to help me make it make it sense for a lay(wo)man like me…
In theory, the Fed is guided by data and sound economic thought.
In reality, the Fed is guided by the whimsy of the Fed Chair, who in this case is an unquestioned blithering idiot.
Still, December is a long way off. If employment strengthens, the impetus for a rate cut esses. If inflation surges, rate cuts turn into rate hikes. If conditions stay the same, Powell has little choice but to cut, even though he doesn't want to.
What betting markets and Wall Street predict for a December rate cut now is pretty much meaningless. Once we get into December, that's when those projections become meaningful.
But Trump and Xi
Powell definitely has the gift of gab. He can call all the 🐻bears straight down to Lake Powell. 💦
Powell increasingly strikes me as being like Biden: insulated from reality, clueless, uncomprehending. Surely there must be some financial geniuses left on Wall Street who understand the situation as well as you do, Peter. Are they going to play this in ways that make them richer, all the while seeming to “go along” with the Fed’s narrative? The rest of us are going to be left without a musical chair to sit on when the music stops. Disturbing.