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June, July, & August 2024 CPI & PPI not what Fed Reserve Needs for rate policy change

Discussion in 'Too Hot for Swamp Gas' started by ETGator1, Jul 11, 2024.

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  1. Sep 19, 2024 at 9:46 AM #201
    ETGator1

    ETGator1 GC Hall of Fame

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    It is Fed screw up #2 under Biden/Harris. Democrat senators headlined by Elizabeth Warren sent a letter to Powell demanding a .75% cut. No politics to see here so move on. (shaking head) If the US does not now fall into a recession, this will have proven to be the wrong decision when inflation reignites again.

    My crow is for the first time in over a year I have been wrong about what the Fed would do. Elections and change of power make for some crazy bedfellows as the Fed is proving their independence is not so independent.
     
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  2. Sep 19, 2024 at 1:11 PM #202
    demosthenes

    demosthenes Premium Member

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    So the Fed takes an action you disagree with and that makes it political? That’s simply asinine.

    Just to be clear, this is the same Fed with Board members whose terms span presidents since they serve 14-year terms and Powell was appointed by Trump. The rotating members of the Fed are hired like any other bank President and are often economists or other well-heeled finance experts.

    For instance, the St Louis Fed Bank is headed up by someone that has a Ph.D. in Economics from Penn and Masters and Bachelors degrees in economics from the London School of Economics. But you think you know more than people with this kind of pedigree. It’s truly laughable.
     
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  3. Sep 19, 2024 at 1:21 PM #203
    l_boy

    l_boy 5500

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    Inflation excluding housing has been under 2% for 2 years. Now apartment rents are flat for about 2 years. Consumer debt balances are growing again to new highs. The economy has shown sign of softening. Housing market is frozen with higher rates and there are higher risks of defaults for those (idiots) who financed with adjustable rate debt

    The only real factor on the other side is cpi housing, which is a lagging indicator and is going down. As long as the economy wasn’t showing signs of softening the Fed could use such measures as an excuse not to lower rates — which in general I agree with.

    I know this doesn’t fit your narrative but it’s likely what the fed is looking at.
     
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  4. Sep 19, 2024 at 6:32 PM #204
    ETGator1

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    stagflation if wrong
     
  5. Sep 19, 2024 at 6:57 PM #205
    BigCypressGator1981

    BigCypressGator1981 GC Hall of Fame

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    a penny for your thoughts on Trump’s proposal on capping credit card interest rates?
     
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