When they first announced potential rate cut schedule, I was like yeah ain't gonna happen and not a good idea. I think many experts agree there should not be any rate cuts this year. Now the media is oh looks like 2 at best, they need to shut up and giving the public false expectations. Rates are not even that high and if there is 1 or 2 cuts this year it's only because of political pressure and could cause some trouble for 2024-25, I really hope there is no cut before the election we still need time especially with continuing global situation. It's been what 9 months since the last rate increase, if it doesn't look like everything is good, then you should of raised rates again.
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Originally Posted by Chick Webb
Yeah, that is the place the powers that be will not go, for sure, as it is the absolute worst possible scenario. But it appears we are there.
Higher-for-longer, or even higher-than-higher-for-longer, is the only solution. That will ultimately flush the money out as paper losses (in CRE, for example) turn into real ones, the government's ability to endlessly line people's pockets to buy their votes will be limited, and businesses will scale back spending further. But, so much economic activity is consumption-based now there is really only one thing that will kill the beast; unemployment. Several million people need to lose their jobs, unfortunately. Not sure when it will happen, but it will if interest rates remain here (or go even higher).
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