Markets see the Fed’s dovish turn as a sign of either a recession or political maneuvering. The only way we get 7 rate cuts is if we’re facing economic disaster.

Citizen Watch Report ^

[davikkm]

The Federal Reserve’s recent dovish turn, suggesting a possible recession or political strategy, has added a layer of complexity to the challenges faced by the Biden administration. President Biden, grappling with declining poll numbers and economic uncertainties, relies on the Fed’s decisions to shape the narrative leading up to November’s elections.

Amid positive economic indicators, such as low unemployment and robust growth, the unexpected move towards falling rates strategically aims to bolster the administration’s appeal to voters. The potential of seven rate cuts underscores the severity of the looming economic downturn.

[Lockbox]

The only way we get 7 rate cuts is if we’re facing economic disaster, or Biden needs to be re-elected……

There, fixed it!

[Brian Griffin]

“The only way we get 7 rate cuts is”

by adding a Buffett-style
excessive (>3% of GDP) spending and you can’t have another term in office amendment
to our federal Constitution.

This would allow Congress to spend more in times of war or depression, but members who do will have to find another line of work at the end of their term.

[Brian Griffin]

Mr. Borrower may not like paying $100 more a month, but Mr. Depositor likes getting $100 more a month.

The goal should be that each gets a fair deal.

[Brian Griffin]

Should Mr. Depositor get shafted another time because for years house builders have been greedy and house buyers have overpaid?

[Bubba_Leroy]

I have no doubt that the Fed will cut rates to try and help Brandon get re-elected. Cutting rates when you are not in a recession will result in hyperinflation. They will then increase rates again until the economy crashes. In 1979-80, the Fed jacked mortgage rates all the way to 19% to break Jimmy Carter’s inflation, so you ain’t seen nothing yet.

The trick will be timing. They need to wait until close enough to the election so that rates will be down and house, vehicle and other big ticket sales are up before the election, but hyperinflation doesn’t hit until after the election.

I predict a 0.25% rate cut in March. Depending how the market reacts, it will likely be followed by additional 0.25% rate cuts in June, and September. Those later cuts could be as much as 0.5% each, if Brandon needs them for re-election. Then in December, they will start increasing rates again.

[Sirius Lee]

the Fed’s decisions to shape the narrative leading up to November’s elections.

Remember when the Federal Reserve was sold to the American People as a means of taking politics out of the monetary decisionmaking?

[nick0786bazpur]

Joe Bi(n)(La)Den