"The govt might like them to cut rates, but they can't..."I have...

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05/03/24

14:52

Post #: 72753241
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Originally posted by Ewebute: ↑

The Fed doesn't have a clue. They are winging it. There appears to be something wrong but they can't put their fingers on it and thus they can't provide any definitive direction. Their narrative changed late last year about rates but again it changed on the recent CPI info. The economy will need to crash so they have a definite piece of info to allow them to cut rates but then too late.

As others have pointed out, the US economy is strong and higher interest rates for longer. The thing that highlights when their economy is going into negative is when the unemployment rates start to rise. By then it won't be a soft landing. And then panic will set in.

If the CEOs etc are cashing out of their shares, then they know better and earlier than us plebs.

Good discussion about this here...

EDIT: The govt might like them to cut rates, but they can't...

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"The govt might like them to cut rates, but they can't..."

I have to agree with you @Ewebute.
Going back to our own Reserve Bank "no Govt intervention" to change a Reserve rate decision in 80 years".

In the US I think the initial advice about interest rates comes from the economists who work for the Fed & Regional Fed's.
There is a team of 400 economists at the Fed reserve in NYC.
The entry level is set very high. A PhD in Economics is required.

There is also some of the 12 regional Fed banks who are on the board. So 12 people on the board incl the chair who have to be convinced.

It was good to see Jay Powell even stood up to Trump (who appointed him) & he let the data influence the decisions on interest rates.

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