Fed announces first rate cut in nine months, to support a weakening job market.

Trumpet

Trumpet

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If the fed is reducing interest rates in a period of inflation, it must be that they anticipate serious economical problem ahead.​

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Fed announces first rate cut in nine months, signals more reductions to come ​

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President Donald Trump has been pushing for the central bank to reduce borrowing costs in order to juice economic growth, but the Fed said its decision was based on the need to support a weakening job market.​

 
We have done this before. Nixon pressured Burns to ignore inflation, and instead concentrate on making the economy look good. It was no where near as extreme an attack on the Fed as trump is doing, but it was severe enough to cause a decade of stagflation.

Once confidence in the Fed is lost, it takes a long time to get rid of inflation. Confidence is almost lost right now. It is easier to accept a recession right now than to have to accept half a dozen recessions over the next decade or two.
 
Walt said:
We have done this before. Nixon pressured Burns to ignore inflation, and instead concentrate on making the economy look good. It was no where near as extreme an attack on the Fed as trump is doing, but it was severe enough to cause a decade of stagflation.

Once confidence in the Fed is lost, it takes a long time to get rid of inflation. Confidence is almost lost right now. It is easier to accept a recession right now than to have to accept half a dozen recessions over the next decade or two.
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You are not wrong about Nixon and Burns. But interesting you leave out LBJ. Johnson was all over Fed chair Martin to keep rates low while he ramped up spending for Vietnam and the Great Society. There’s the famous story of LBJ pinning Martin against the wall at his ranch pushing for lower rates.

None of us are totally consistent, but a modicum of it isn’t going to hurt anyone.
 
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