US Federal Reserve cuts key rate by sizable half-point, signaling end to its inflation fight.
US Federal Reserve cuts key rate by sizable half-point, signaling end to its inflation fight.
Dramatic shift comes after more than two years of high rates helped tame inflation but that also made borrowing painfully expensive for American consumers
Inflation is over guys, prices are stable now and everything is totally fine. Nothing to see here yall!
Would you prefer they keep rates high? Inflation has dropping pretty consistently for months and was 2.5% y/y last month. Food price inflation was even lower y/y. What action would you prefer the Fed take?
That's the thing, it's Congress being a limp dick that forces the Fed to fight inflation with rate raises that inevitable ends hurting workers.
If the inflation induced by the monopolization of key industries and pure greed would have been addressed by legislative action restoring the free market and clawing back windfall profits through smart taxation, people would be better off and would not be looking to elect a fascist.
The "Fed only has this one tool" situation is a false dilemma. Inflation is not the root problem, the oligarchy is.
There is no winning strategy to a fundamentally corrupt system. The Fed should be abolished and the state should reclaim its monetary sovereignty.
Honestly I think the rate should've dropped by 2 or 3 whole percentage points (so like 200 or 300 basis).
The current rates are OBSCENELY HIGH and have not halted inflation even if they have attenuated it to some extent.
The Fed likely knew this damage would occur from this kind of tampering and only now are they acting to curb it.
Are the poors sufficiently disheartened??
Good, good. Lower the rates a half a point 😏
Good news and it points to the idea that Canada will drop .5 at their next meeting. Inflation in Canada is down to 2%>
I personally agree with some people that a .25 drop would be more prudent but I understand and accept a .5 drop should it happen. It seems like the worst is over now it's a matter of sticking the landing.
Jerome Powell looks pretty stringy, but I bet I can grind him up into cat food.
Okay, but only if he lives on a vegan diet.
Free money is coming back!
Europe is already down to 3.5 percent.
Yeah, there is a bigger push since most those countries are variable rates for more of their sectors. Their interest rates are always quicker to adjust. I've been paying 2.4 on my home and .4 on my car for the past 3 years. I'm just not getting new credit.
Consensus is that the variable rate model is overall cheaper but the fixed rate model reduces risk and encourage growth.
I'll wait a year or two for the rates to fully catches l catch up and enjoy not having my mortgage payment jumped up $600 for the past 3 years tyvm.