FED left rates unchanged

[Zoe]

Here you go Look at this chart. Very reliable source from fed reserve bank:

Federal Funds Effective Rate

View data of the Effective Federal Funds Rate, or the interest rate depository institutions charge each other for overnight loans of funds.

fred.stlouisfed.org

 

[Zoe]

Do you see how Fed funds rate bottomed out at 2020 in Covid?

That fueled inflation along with all the free money Trump admin gave away in COVID.

What does Fed reserve bank do? They jack fed funds rate to calm inflation.

I look for possible special meeting to cut fed funds borrowing rate before September.

 

[Zoe]

Fed knows if they get too aggressive with the fed funds rate, they can cause recession or depression. I look for cut soon. I know why they did it. It was to hit inflation with a sledge hammer.

 

[Zoe]

Look at this chart on inflation and CPI:

Inflation, consumer prices for the United States

Graph and download economic data for Inflation, consumer prices for the United States (FPCPITOTLZGUSA) from 1960 to 2023 about consumer, CPI, inflation, price index, indexes, price, and USA.

fred.stlouisfed.org

 

[Zoe]

Some businesses are getting in trouble because their cost are falling and they have not lowered their prices.

Fast food jumped on lowering prices quickly because inflation rates fell so hard.

Their costs fell so hard because of inflation rate.

Now they are in keep coming to me for fast food. Look at our low prices.

 

[Zoe]

Fed funds rate is directly related. They may call special meeting and drop it a little.

When the FED fund rates even drops like 0.25%, it has huge impact on the world economy.

Drop by 1/4 percent on fed funds rate would have world wide impacts.

 

[Zoe]

I don't think Fed will cut rate over 1/4 percent. But I don't know.

The FED cannot do anything drastic because it effects the whole world economy.

If the FED cuts 1/2 percent, I will be shocked.

Their rate is directly related to what banks pay on overnight lending from FED reserve bank.

It has to do with money supply in the whole world economy.

 

[Zoe]

Fed funds rate also has huge impact on inflation.

 

[Zoe]

Maybe a clue.....mortgage rates fall:

Mortgage rates fall in anticipation of a Fed rate cut - Marketplace

Rates hovered around 7% for a good part of this year. They're now at about 6.5% with a growing consensus around a September rate cut.

www.marketplace.org

I am not sure they won't cut them before Sept. They look at many economic indicators on the overall economy.

They are not stressed. They are like we know what is going on.

 

[Terrel L. Shields]

Concentrate on service jobs which needs workers here

So, you think someone who has been out of school 40 years is suddenly going to understand much of anything about a computer or coding? How delusional is that? Most men I know who do manual labor over 60 with degrees for the most part, spend very little time with computers and most certainly not coding. They might surf their smart phone, or work the TV remote, but they are not programmers and by the time they get to that point, they are likely retirement age. You going to retrain a 50 to 60-year-old man for 4 years (without income) then he retires 3 to 10 years afterwards and coding is not as well-paying as mining or some skilled manual position. And once you destroy an entire industry that supports a town, there isn't many jobs in that town left. So, you are forced to move from the home you may have known for 60 years.