FED left rates unchanged

[Fernando]

I can't believe Kamala's father was an economics professor and none of it rubbed off on his daughter, absolutely nothing.

She was raised by a single mom.

 

[Zoe]

What Happens When The Fed Cuts Interest Rates?

Bubble economy. Crisis. Recession. These terms have become all too familiar to Americans over the last decade and a half. When maladies like these begin to undermine the U.S. economy, it’s the job of the Federal Reserve to jump in and cut interest rates to help things get back to normal. What Happe

www.forbes.com

"“The Fed will cut interest rates when it feels like employment and inflation are too low and it wants to incentivize borrowers to consume and invest more quickly,” says Christopher Burns, vice president, investment strategist for Greenleaf Trust, in Kalamazoo, Mich.""

"When consumers have access to less expensive credit, they tend to buy more goods and services, driving more economic activity. Meanwhile, businesses are able to more easily finance their operations, which can help boost employment and the overall economy."

The unemployment numbers could spur rate cut. It should help the real estate business and other business if it happens.

It is almost like the FED is stuck between rock and hard place because inflation is still higher than the FED's goal but unemployment jumped recently.

They may not touch the FED funds rate.

 

[Terrel L. Shields]

Brian Moynihan today

So the Fed is in a position they have to be careful that they don't slow down too much. Right now, where they are spending at is consistent where they spent in '17, '18,'19, a lower inflation, a more normal growth economy.​

​

So, TBTF banker thinks the Fed is basically neutral. And, if so, no reason to think interest rates will fall down to 1% anytime soon. Dimon thinks we are better than 50/50 going to have a recession. Moynihan is betting there will be no recession. Go figure.

 

[Zoe]

Brian Moynihan today

So the Fed is in a position they have to be careful that they don't slow down too much. Right now, where they are spending at is consistent where they spent in '17, '18,'19, a lower inflation, a more normal growth economy.​

​

So, TBTF banker thinks the Fed is basically neutral. And, if so, no reason to think interest rates will fall down to 1% anytime soon. Dimon thinks we are better than 50/50 going to have a recession. Moynihan is betting there will be no recession. Go figure.

The FED is stuck unless other indicators other than inflation and employment are involved.

The two indicators say we hold where we are for a little bit. Did they overreact too on raising rates to hit inflation?

Very possibly.

Idk. They have many indicators they look at before they change the Fed Funds rate.

Mortgage rates falling this week probably says let's stay cool where we are.

It is shrinking spread on mortgage financing, but I am not sure they will move on fed funds rate in September.

That inflation rate still has them bothered. And many big businesses are getting hit because they are saying you need to lower your prices because your cost to produce have fell so much.

It is big spider web the FED looks at.

 

[Zoe]

If you look at how Mcdonalds, and fast food have cut prices huge recently, it is small indicator that their cost to produce has fell significantly.

Their food costs had to fall or there is no way they could be cutting prices.

 

[Zoe]

They will be on the big grocers next and say look at your food costs and tell me why you have not lowered prices?


My favorite grocery will be in the bullseye. Lower your prices.

 

[Charles West]

She was raised by a single mom.

You don't get your genes from whoever raises you.

 

[Zoe]

I really don't see Fed changing rates in September.

I would like it if they do.

Unemployment would be about only reason they lower the fed funds rate.

They know more about national and international economics on anything they do with adjusting Fed funds rate.

Unemployment rate may be lower than other indicators to them national and international.

 

[Zoe]

See.....inflation rate is still strong with FED.

The rising rates have calmed it a bunch and really have not had time to show up in national and international impacts.

They have to be careful and see what the impacts they have already done on Fed fund rates. We see the drastic drop on inflation.

We got that. The FED has to be careful.

 

[Zoe]

I look for FTC to get involved with grocers if fast food is able to cut their costs so much and it is not showing up in major groceries.