Quote:
Originally Posted by Boomer
Inflation peaked at 9.1% in mid-2022 as we were making our way out of Covid.
NOW inflation is at 2.5%.
The Fed does not operate in a vacuum. There are 19 people on the committee and 12 of them get to vote. 11 of the 12 voted for the half point cut. The other one wanted a quarter point cut. But all agreed the time has come to cut and cut again.
The economy is not a horror like some are being led to believe. We are in recovery. Be glad.
This So Sad, Too Bad routine I have seen from those who have been rooting for a recession makes no sense to me. I must assume they have been dysinformed.
I accept the fact that my money market is going to take a hit, but I don't think we will have to return to nothing. I think this rate cut is going to drive the economy in an even more positive direction -- so I can give up something to get something. I hope to see 5% mortgages so the housing market can normalize and first time buyers can have a chance and corporate landlords won't have really cheap money to use to hog all the starter homes and gouge renters. That would be good for the economy on so many levels. Interest rates have been obscenely low for a lot of this century. Maybe, just maybe, we are on our way to normal.
Boomer
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The economy is better? Well when you pick and choose specific data points you can make data look whatever way you wish. Here are three data points that you missed: Credit card debt is at an all time high. The highest it’s been since the data started to be recorded. Auto loan defaults are at a record high. And the personal savings rate is at 2.9% whereas for quite a number of years the average has hovered around 8%. And one more comment. Powell stated that the unemployment numbers are affected by the number of immigrants available in the workforce. Okay so he’s talking about those who are here without a work visa, student visa or green card, or social security card, like those living for example in hotels in NYC. Historically unemployment was measured using data from states as to those who are unemployed and collecting benefits, those who are no longer eligible to collect but remain unemployed, large layoffs in specific quarters of the year and employer open positions not being filled. So pick a data point you like. “In God we trust, everyone else, bring data”.