If they cut .5 points they are just trying to save the labor market inflation has set its foot

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Possibility of cut raises markets but the actual cut crashes them

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Its already priced in. Unless the expected cut comes at .5 or greater, it will sell the news. Its like clockwork

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Is this main street recession in the room with us right now? Consumer sentiment has been shit for years, saying the consumer will cut spending and the end is near.  Yet consumer spending remains strong.

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How do you know there will be a rate cut?

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> Go look back at the history of rate cut cycles. 2007: Market collapsed 2000: Market collapsed What history are you looking at?

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Citron Report indicates 5,50, and we've got the first cut coming up next wednesday (17 sept) We good brother

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I wanted to post about it, but the mods keep deleting it. When I asked them about it, they said that my post is shitty and then muted me for 30 days. Everyone keeps talking about how interest rate cuts will make stocks go up, but barely anyone seems to realise that the opposite might happen and that a lot of money will move from stocks to bonds. Treasury bonds are really attractive to banks at this high yield. When interest rate cuts happen, the gap between interest paid on loans and interest received on bonds will only widen. And interests paid on loans will still remain high because otherwise less people will deposit their money at a bank, which is quite a problem. Sure, bond yields are currently going down because of the expectation of a cut, but they will always remain high. No one trusts the government enough to give them money at a low yield. The same goes for corporate bonds. A lower fed funds rate does not guarantee lower interest rates for corporates. The bank doesn't decide how much interest is paid on these bonds. Investors do. The only thing banks want to do is lending money to businesses and then sell it off to investors. Investors dictate these yields. If they don't trust corporate bonds in this economic climate, they will still require higher yields, no matter the rate cut(s). This is a huge difference from when QE was introduced more than 10 years ago and when government yields dropped significantly with interest rate cuts. Then banks had to make risky loans to businesses and invest in riskier stocks because the government yields were so low. We're not in that same environment. Are we deliberately ignoring this fact or don't we know better. I know many people will make the joke 'we don't know better'. But seriously.

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Big balls on you. Next week after the rate cut you should be good

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Fed not cutting, or they cut but stoke stagflation fears so they start panicking

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