"Inflation is coming down"

[Non Sequitur]

The 2-year Treasury is up 21 basis points this morning, that can't be good.

Pricing in the lack of cuts? Jamie Dimon thinks rates will rise over 8% and a soft landing isn't likely.

 

[The Bob]

I think it's very unlikely they cut. The cost-push side of inflation has come down, but the demand-pull shows no signs of slowing. People continue to pay crazy high prices for everything; record high CC debt, etc.... On top of that you have mandated min wage increases on both sides of the country; record union pay increases, etc...All of that leads to more demand. And that's the hardest part to control, because it involves peoples expectations of inflation.
I think Powell has been consistent in saying they WILL get inflation trending solidly towards 2%. It doesn't have to get to 2% but the trend needs to be in that direction. In fact waiting to hit 2% would be a big mistake imo.

 

[Elliott]

18 20 basis points on the ten year treasury today signals a 1/4% rise in mortgage interest rates, IMO. Gasoline and higher interest rates push inflation too.

While the claim "inflation is coming down" is baloney, interest rates are not going down!

 

[WestMichiganCG]

It's interesting how this thread started as a dig against Biden. I'm curious to hear from someone who has dedicated a large amount of time into the root causes of inflation has to say about this topic. How much does a president really have control over inflation? My understanding is that Powell has significantly more power to affect our inflation rates than the president. He also doesn't seem to be a guy that is swayed by the whims of the president regardless of the party affiliation as he presided under Trump and Biden. There is also continued fallout from the pandemic along with global inflation occurring at the same time. We're a connected world and our country isn't immune to the effects of global financial impacts like energy cost increases from the Ukraine/Russia war. England is dealing with worse inflation than we are. Add to that shrinkflation and companies charging more with inflation showing up from excess profits. I also think that Congress has more to do with the spending side of our economy than the President as the President is just waiting for something to sign so we don't go into default. Congress is a dysfunctional lot with the Republicans fighting for their military sacred cow arguing with the Democrats fighting for their social programs sacred cows. I think the Red Team, Blue Team is just a shiny object used to distract. The real power in our government is not term limited. I do think that presidents open themselves up to criticism when they take credit for jobs and declining inflation. They aren't the fed that changes the prime rate, and they weren't at the interviews that created the jobs.

 

[IlliniApp]

The president always gets too much credit or too much blame for economic conditions. But voters don't want to be gaslighted about what's going on either.

 

[Fernando]

I think EV's will be popular in areas with Mediterranean-style climates like CA and that is about it for the current generation of battery technology. In areas like the east coast where it gets freezing cold in winter they are worse than worthless.

Biden's push to EVs will spur more advanced technological advancement in EV for hell freeze areas in the near future.

 

[Fernando]

The 2-year Treasury is up 21 basis points this morning, that can't be good.

It's good for those buying Treasuries.
Bad for those who borrow money.
I inquire about HELOC and the rate is over 10%. WTF.
Not good time to borrow and buy investment properties especially if appreciation isn't going as fast up.
Less risk and good conservative return of over 4% in doing nothing.

 

[alebrewer]

I think the Red Team, Blue Team is just a shiny object used to distract.

You're exactly right. There is only one team - the corrupt team. The 'red vs blue' is just a ploy to see which group gets to stay in power and r@&# the citizens during that term... the red team screams about less government, less regulation, etc., but only insofar as those policies make the wealthy wealthier and the poor more dependent on them. The blue team screams about equality, bigger government, more regulation, etc., but only insofar as those policies make the wealthy wealthier and the poor more dependent on them.

 

[Charles West]

I will settle for someone that will stimulate the private sector instead of the government sector. The only way we get out of debt is by growing the private economy.

 

[WestMichiganCG]

I will settle for someone that will stimulate the private sector instead of the government sector. The only way we get out of debt is by growing the private economy.

You can't earn your way out of stupidity. -Dave Ramsey