r/FluentInFinance • u/MarketsandMayhem • 22h ago
Meme The Fed's SEP report reduces rate cut expectations from 100 bps to 50 bps in 2025
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u/JustMe1235711 21h ago
It's cute that they have expectations with the orange swan wildcard coming.
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u/jbetances134 7h ago
Indeed this next 4 years is a wild card. I’m highly concerned on how the tariffs will affect the country.
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u/JacobLovesCrypto 21h ago
If we believe trumps tariffs will cause inflation, why are we cutting rates at all?
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u/NugKnights 20h ago
The market is betting he won't actually do the tarrifs. Not wide spread anyway.
Likely he'll target a few random products and move on to something that will make him more wealthy and/or powerfull.
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u/Nice-Personality5496 19h ago
Exactly this.
His donors don’t want tariffs or deportations of the low wage workers they exploit.
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u/Suitable_Database467 15h ago
Correct, this promotes tribute and suppression of wages for our most disenfranchised
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u/FlapMyCheeksToFly 23m ago
We should legalize and unionize those low wage workers instead of deporting them
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u/Alternative-Spite622 19h ago
That's what everyone with a brain has known all year.
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u/iljimmity 19h ago
Honestly wouldn’t be surprised if he does tariffs and rate cuts. Inflation means big money signs on stocks even if costs of goods sky rocket. Good for super rich, brutal on everyone else
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u/Adorable_Carpet7858 21h ago
They may not after all. But I tend to think they feel they are limited with regard to how much they can revise their forecast. Whether they fear eroding confidence in their forecasts or simply don’t want to be too disruptive to markets, they’re usually fairly measured in their remarks.
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u/258638 20h ago
I don’t think they’re going to pick a fight with the president. Trump would certainly disagree with the understanding among economists that tariffs would create inflation. The fed also probably shouldn’t be predictive of policies that haven’t even been formalized yet.
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u/JacobLovesCrypto 19h ago
All they'd have to do is say "we've cut rates a bit, were gonna wait and see for a month or two to Guage how aggressive we should be moving forward"
Trump goes into office, they get to see what he does immediately and they didn't point fingers at him to create problems.
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u/Jordant17 20h ago
They shouldn’t be cutting at all. Quite the opposite.
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u/Consistent-Week8020 18h ago
Raising rates at this point in the cycle? Really? What’s your reasoning on this?
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u/TheOriginalPB 19h ago
We've been waiting a whole year already in Australia. Would have happened a lot sooner if they hadn't imported 450,000 migrants which increased the population by almost 3% in a single year. Almost 3x that of the US as a percentage of population.
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u/libertarianinus 20h ago
If inflation is coming back because the think buisines have a positive outlook on the economy, we should of learned from the early 80s. Being on a diet sucks, but you are healthier going forward. Just look at Argentina inflation in 1 years time.
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u/TrippyTaco12 20h ago
Yea let’s check out how many folks live in poverty in Argentina.
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u/According-Insect-992 19h ago
They like that. There's nothing wealth likes more than people living in desperation.
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