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Online mystery-ak

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Panicked Democrats Demand Rate Cuts Now
« on: August 02, 2024, 12:30:54 pm »
Panicked Democrats Demand Rate Cuts Now

Sean Moran 2 Aug 2024

Democrats on Friday urged the nation’s central bank to cut interest rates now as the unemployment rate surged.

The unemployment rate jumped to 4.3 percent and employers added 114,000 workers to their payrolls in July, a significant miss from economists’ 180,000 expected jobs estimate.

As Breitbart News Economics Editor John Carney noted, the significant jump in unemployment may suggest that the economy might be heading towards a recession:

    The 4.3 percent unemployment rate brings the three-month average 50 basis points above the lowest three-month average over the past 12 months, a threshold known as the “Sahm Rule” that historically has indicated the beginning of a recession.

    Fed chairman Jerome Powell on Wednesday said that while recessions have typically followed a triggering of the Sahm rule, a recession was not guaranteed.

“It’s not like an economic rule, where it’s telling you something must happen,” Powell said.

Many Democrats who have been calling for the Federal Reserve to cut interest rates are demanding that the Fed take action now.

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https://www.breitbart.com/politics/2024/08/02/panicked-democrats-demand-rate-cuts-now/
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Offline LMAO

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Re: Panicked Democrats Demand Rate Cuts Now
« Reply #1 on: August 02, 2024, 01:22:10 pm »
And they’ll get them

Not because they demand them. But  todays jobs report will make that likely if it continues
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Online Fishrrman

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Re: Panicked Democrats Demand Rate Cuts Now
« Reply #2 on: August 02, 2024, 03:59:15 pm »
NO!

We need HIGHER interest rates to curb inflation.
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Offline DefiantMassRINO

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Re: Panicked Democrats Demand Rate Cuts Now
« Reply #3 on: August 02, 2024, 04:20:47 pm »
Dems, chill.  The Fed can't afford to raise rates:

1.) Higher rates would lead to more financial institutional insolvencies by making long-range Treasury Bonds toxic (worth less than face value).

2.) Federal Debt service is now larger than the DoD budget.  Higher rates would mean less funds available for "discretionary" spending, and could force cuts to "non-discretionary" spending.

3.) Higher rates may also contribute to am inverted yield curve - lack of market liquidity (economy asset rich, but cash poor).

Feds can't afford to lower rates too much.  That will cause to many dollars chasing too few goods and services - inflation.

But, the Market, could increase rates by poor participation in Treasury securities auctions.  In these circumstances Treasury may look to "market makers" and the Fed to sop up excess supply.

Government, Healthcare, and Education are consuming too much GDP compared to sectors that produce goods and services.  These sectors need efficiency gains and reduced cost structures.
« Last Edit: August 02, 2024, 04:21:54 pm by DefiantMassRINO »
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Offline Weird Tolkienish Figure

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Re: Panicked Democrats Demand Rate Cuts Now
« Reply #4 on: August 02, 2024, 06:32:55 pm »
We're bleep either way, seems to me.
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Offline Hoodat

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Re: Panicked Democrats Demand Rate Cuts Now
« Reply #5 on: August 02, 2024, 08:22:32 pm »
Quote from: Fishrrman on August 02, 2024, 03:59:15 pm
NO!

We need HIGHER interest rates to curb inflation.

The simplest way to stop inflation cold is to stop printing new money to fund Democrat government programs.
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Offline Hoodat

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Re: Panicked Democrats Demand Rate Cuts Now
« Reply #6 on: August 02, 2024, 08:24:01 pm »
Quote from: Weird Tolkienish Figure on August 02, 2024, 06:32:55 pm
We're bleep either way, seems to me.

The reason we're screwed is because government deficit spending exceeds GDP growth.  And the Fed insists on funding it solely by expanding the money supply.
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If a political party does not have its foundation in the determination to advance a cause that is right and that is moral, then it is not a political party; it is merely a conspiracy to seize power.     -Dwight Eisenhower-

"The [U.S.] Constitution is a limitation on the government, not on private individuals ... it does not prescribe the conduct of private individuals, only the conduct of the government ... it is not a charter for government power, but a charter of the citizen's protection against the government."     -Ayn Rand-

Offline Wingnut

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Re: Panicked Democrats Demand Rate Cuts Now
« Reply #7 on: August 02, 2024, 08:45:23 pm »
Don't panic people.  This is not your fathers stock market.  They don't play by the old rules. 
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Offline Hoodat

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Re: Panicked Democrats Demand Rate Cuts Now
« Reply #8 on: August 02, 2024, 08:57:01 pm »
Every single minute, the Fed adds $3.8 million to the money supply.  $228 million every hour.  $5.48 billion every day.  $167 billion every month.  Where do you think that money ends up?
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If a political party does not have its foundation in the determination to advance a cause that is right and that is moral, then it is not a political party; it is merely a conspiracy to seize power.     -Dwight Eisenhower-

"The [U.S.] Constitution is a limitation on the government, not on private individuals ... it does not prescribe the conduct of private individuals, only the conduct of the government ... it is not a charter for government power, but a charter of the citizen's protection against the government."     -Ayn Rand-

Offline Free Vulcan

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Re: Panicked Democrats Demand Rate Cuts Now
« Reply #9 on: August 02, 2024, 09:05:04 pm »
Quote from: Weird Tolkienish Figure on August 02, 2024, 06:32:55 pm
We're bleep either way, seems to me.

Yep. Rock, meet hard place.
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Online jafo2010

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Re: Panicked Democrats Demand Rate Cuts Now
« Reply #10 on: August 02, 2024, 09:45:45 pm »
A collapse is coming, perhaps a war with it.

Suffice to say the future is bleak.
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