Fed needs to cut interest rates

[Laodicean60]

Historically the FED has been late at almost all recessions before cutting rates

Fed needs to cut rates at least five times next year, portfolio manager says

The Federal Reserve needs to cut interest rates at least five times next year to avoid tipping the economy into a recession, according to a portfolio manager.

www.cnbc.com

 

[linux.poet]

Can the Fed even do that without driving inflation sky high?

Right now it seems to me that the interest rates are going up to try and control inflation. If you slow the money printers, that pushes the inflation down and the interest rates up.

 

[Gregory Thompson]

But people are supposed to stop spending what they don't have so that we can have a better economy.

The buying power of the dollar against the gold standard has doubled since the pandemic, meaning all money in our pockets is worth half the value.

However, looking at the bigger picture; The price of gold has multiplied by 5 in the past 20 years. This means over a short period of time, money has become gradually less valuable. Meaning the money in our pockets is worth one fifth the value.

Something to consider, as the current trend seems to be continuing in the same direction.

Gold Price History

Gold Price History - Historical gold price charts in ounces.

goldprice.org

 

[Laodicean60]

Can the Fed even do that without driving inflation sky high?

The daily economic data from the FED calendars show disinflation in some sectors. Current spending also contributes to inflation.