Current Events > Feds cut interest by a quarter point, first time during trump's 2nd term.

(+) Yeah! (+)

https://finance.yahoo.com/news/federal-reserve-cuts-interest-rates-for-first-time-this-year-sees-2-more-cuts-in-2025-180107133.html

Your savings are now instantly earning less, and inflation got a boost.

fucking pieces of shit.

Cowards

trump has been threatening to fire powell for not doing this since like January, now that he finally did look at him still wanting to fire him for reasons

Mearcstapa posted...

Your savings are now instantly earning less, and inflation got a boost.

fucking pieces of shit.

To be fair, your savings probably been going down since the start of trump's term. But i'm not seeing the cuts helping any.

tremain07 posted...

Cowards

Mearcstapa posted...

Your savings are now instantly earning less, and inflation got a boost.

fucking pieces of shit.

Just because Trump wants the Fed to massively lower the rates doesn't mean they should be hiked or held forever. Powell probably would've continued to hold except for the job report revision which strongly suggests the job market is doing very poorly.

The Fed has a dual mandate to keep unemployment and inflation low. High rates mean higher unemployment, low rates mean higher inflation. It's a balancing act

Trump's appointee dissented and said they would've done a 50 points cut

Doe posted...

Just because Trump wants the Fed to massively lower the rates doesn't mean they should be hiked or held forever. Powell probably would've continued to hold except for the job report revision which strongly suggests the job market is doing very poorly.

The Fed has a dual mandate to keep unemployment and inflation low. High rates mean higher unemployment, low rates mean higher inflation. It's a balancing act

Trump's appointee dissented and said they would've done a 50 points cut

yeah this, powell has always made it clear that he wants to bring down inflation but not at the risk of obliterating the job market.

Borrowers might like the rate cut, but who actually wants to do anything in this economy?

High-yield savings accounts and money market accounts are going to suffer though. Not everyone wants to buy stocks and ETFs, even if they can grow faster.

The value of the dollar isnt really concerning yet.

621 posted...

yeah this, powell has always made it clear that he wants to bring down inflation but not at the risk of obliterating the job market.

job market is already fucked.

Home prices to the moooooon again

Mearcstapa posted...

Your savings are now instantly earning less,

That's my trick, Mearc: I'm never saving.

I was wrong. I thought the Fed would hold in spite of Trump. Still he won't like that they only went down a quarter of a percent.

Mearcstapa posted...

Home prices to the moooooon again

They never came down from the moon, from what I've seen.

FuriousFox posted...

They never came down from the moon, from what I've seen.

Yea, they are still way over price thanks to everyone but people that actually want to live in the home actually buying the houses up.

When is this taking effect?

It's usually immediate.

tripleh213 posted...

When is this taking effect?

Today, the article mention they plan on two more times before year end, but it probably based on the next series of reports.

This sucks because it was at 4 1/2% earlier this year

Will this bring down mortgage rates? I need to refinance

Dark_Moon posted...

To be fair, your savings probably been going down since the start of trump's term. But i'm not seeing the cuts helping any.

Yeah, I have a high yield that I started under Biden that was initially drawing more than 5% APR, when I checked a few weeks ago it was already in the low 4s.

I mean this was largely expected, economy getting worse and inflation is about the same,

Mearcstapa posted...

inflation got a boost.

I'm in the US visiting and basic lunch stuff that was $5 last time I lived here is now like $15. That is 300% inflation in the space of like 10 years. I thought New Zealand was expensive but pretty much everything is way cheaper there now than the US. Plus NZers get four weeks annual vacation as a basic employment right, and public option health care as a basic human right.

Trump has completely ripped the idea of gen z ever owning a home, honestly he's sent this country into an economic collapse we can't recover from all the moves being made now are like plugging holes on a leaky ship, it's sinking and taking on water and at some point the holes are gonna be too numerous to plug anymore.

Disappointing choice all around. Inflation will only get worse, assets prices are through the roof and the inevitable recession being kicked even further down the road for no good reason.

Prismsblade posted...

Disappointing choice all around. Inflation will only get worse, assets prices are through the roof and the inevitable recession being kicked even further down the road for no good reason.

I wouldn't put it past them to keep doing this til a Dem gets in office so they can blame the inevitable crash on them and the idiotic public will rush to place republicans back in power

that's what so scary if they don't manage to enact their complete total control with Trump's term they have plenty of ammo to ensure the Democratic incoming president no matter who they may be is all but doomed to be destroyed in the media for the things republicans have done and the public will fall for it and immediately rush to put them back in power again