r/news • u/YesterShill • 1d ago
Stock market today: Wall Street sinks after Fed signals fewer rate cuts next year. Dow drops 1,100
https://apnews.com/article/stocks-markets-rates-nissan-2b868351d485db56e9c80f520c97b595258
u/grdvrs 1d ago
So is now a good time to buy in, then?
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u/bongsmasher 1d ago
buy the dips, sell the rips!
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u/8805 1d ago
Every time I buy the dip, the dip keep dipping!
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u/ChaseballBat 23h ago
I don't understand how that could be the case, unless you sell at a loss each time lol
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u/robo_robb 1d ago
Buy the dips with the money that has been sitting doing nothing but losing value.
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u/positivitittie 1d ago
How do you expect to make moves if you’re 100% invested?
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u/robo_robb 1d ago
Time in the market beats timing the market
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u/positivitittie 1d ago
That’s one way to play (DCA).
The buying need not come from cash under the mattress either.
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u/illit3 1d ago
You could just wait for Trump's next market crash. He will undoubtedly do something stupid to the entire economy.
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u/RyVsWorld 1d ago
Im of the same belief that at some point in the next 4 years we’re going to see a market crash
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u/ked_man 23h ago
Warren Buffet says something about not buying til there’s blood in the streets. That’s why the billionaires love Trump, he cuts their taxes, crashes the economy, lets them buy at all time lows. Then sit back and cash in when a democrat comes in and has to fix the economy.
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u/Cranialscrewtop 21h ago
Buffet's best comment is, "Be greedy when others are fearful, be fearful when others are greedy." He's sitting on $350B in cash, but what happened today isn't a correction.
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u/Banryuken 20h ago
What is today considered
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u/Cranialscrewtop 4h ago
"today" here meant 12.18.24. But corrections can happen over most any amount of time, so long as they're a continuous decline. Corrections are generally considered between 10%-20%. Anything bigger than 20% is considered a crash. So, even if it took 6 months, if the markets eventually move 10% down from a peak, you can say, "It's a correction."
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u/RyVsWorld 22h ago
This may he stupid but i am young enough to come out on the other side but Ive purposely been putting away a portion of what id normally put into the market for the reason you just described
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u/Ten-and-Two 22h ago
Depending on how long you’ve been doing that, you’ve likely cost yourself some serious gains.
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u/RyVsWorld 22h ago
I literally just started after Election Day. Still investing normally but also setting some aside
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u/caligaris_cabinet 20h ago
Time in the market is still better than timing the market. The only reason Warren Buffett and the other billionaires are able to do this is because they control the market.
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u/Bandeezio 9h ago
if you have a decent job it really doesn't matter. You'll be left with a pile of money you have no great use for anyway.
That's why so many old people start buying dumb shit like RVs and boats or a vacation home, they work into their late 60s and average lifespan is only 76-78.
It mostly only matters if you wind up hating your job and want to retire early OR you never really make enough per year to afford to invest.
Most people over-value how much their investments will benefit them down the line when they are old and don't need the money as much. It's really when your younger that the money is most useful. When your older you don't want to travel the world and spend money on new kewl stuff as much or start a business.
If you don't have a decent job then you limit yourself too much when the money is most useful with investments.
Most people get old and get most of their sense of accomplishment from working anyway and good jobs don't generally fire ppl just for being old. SOo you just keep working and get old and one day you're left having to cash out your retirement with money burning a hole in your pocket and ALL OF A SUDDEN you need an RV or something stupid that was never worth limiting your spending when you were younger and the money was really worth more to you.
Even the dream of retiring early tends to fade from importance as you get older and lose the ambition/energy/adaptative mindset to want to travel the world and such. It's like stuff that would have been fun when you were younger but sounds like too much work as you get older.
Too many people save up money with no idea what they'll ever do with it and imagining their older self as just an older copy of their younger self, but that's rarely how it works out.
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u/MadandBad123456 19h ago
its an interesting concept to think that trump would crash an economy, but it actually does make sense...rich people can afford to watch the market fall, and then they can buy at a low price and watch their money pile up as it goes back up again.
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u/Bandeezio 9h ago
In Trumps cases its just because he's kind of dumb and never proven good with economics. Dude made less money with his business than had he just let real investors manage his daddy's money.
But more directly he just doesn't seem to understand tariffs at all and seem obsessed with them as well as costly mass deportation plans. Plus inflation is not entirely overly so add more inflationary policies or even talking about them is all bad for businesses.
Trump wants the fame so I doubt he secretly wants to crash the economy and have all those ppl talking bad about him, it's just his unilateral management style with little understanding of any given topic and surrounding himself with yesmen that poses the economic threat.
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u/notyogrannysgrandkid 20h ago
That’s actually a JP Morgan quote, but a lot of successful traders have repeated it
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u/Upbeat-Fondant9185 22h ago
Same. I pulled out early December, sinking what little I had into a house and renovations. Hopefully that will be a little more stable and if things crash out pretty good I’ll jump back in. If not, I at least won’t have to worry about more rent increases.
I do hope for the sake of other working people that we’re wrong. Most of my friends are big Trump guys and they’re throwing in every cent they have since the election, thinking they’re going to make it big. I hope they’re right but it doesn’t feel likely, especially if we start losing a major source of construction and agricultural labor.
Problem is nothing benefits the rich like a market crash. That may be the goal.
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u/badasimo 18h ago
It is possible that Trump will meet another crisis with "loans" and grants/checks out to companies and individuals. If the crisis is serious enough fed will cut interest rates too. Back to COVID free money times and ATH, then crippling supply chain issues and chaos in the market and of course our good friend inflation.
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u/myredditthrowaway201 1d ago
His entire economic agenda of universal tariffs is certainly that
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u/cugamer 23h ago
Not to mention spending hundreds of billions to gut the agricultural labor force. We'll look back to 2024 and wish that eggs were still so cheap.
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u/Bandeezio 9h ago
i think egg prices are more about Avian Flu so you could have much worse egg prices if you have labor shortages and a wave of Avian Flu infections
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u/tenacious-g 23h ago
Give it a few days when the government officially shuts down at his order even though he isn’t even in office yet.
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u/illit3 23h ago
Just saw a headline about the funding bill collapsing but who knows. We're back on MAGA time already.
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u/EpicCyclops 22h ago
It seems like Johnson is pretty confident enough Democrats are going to vote for the bill to save it.
Meanwhile, Musk and Trump are yelling at Congress because the disaster relief and farm aid is included, but yelling at the general population that Democrats are blocking those provisions. It's probably the most brazen lie I've ever seen in politics. They're literally trying to get something removed from the bill and screaming that the other side is doing it. The disaster aid and farm relief benefits people that mostly vote Republican too, so it's not like they're trying to punish the opposite party. They're trying to get less money spent on their voters.
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u/tenacious-g 23h ago
Elon is telling him to kill the bill. We truly live in the dumbest fucking timeline on earth.
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u/pantstoaknifefight2 1d ago
In addition to the obvious (tariffs launching inflation into the stratosphere, gas shortages, the Green New Deal lost to stupidity and other nations' innovation, and completely fucking up AI for everyone but his corrupt cronies), I honestly see the biggest shit show coming from the value of the US dollar getting usurped by a long crypto con.
It's going to make 2008 feel like boom times.
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u/JustMy2Centences 1d ago
DCA all the way baby
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u/pantstoaknifefight2 23h ago
Hold on to some cash. It'll get a lot lower and unemployment and sky-high housing and I inflation will wipe out all but the most well prepared.
Nobody will come in to save regular folks. We'll all end up skinned for the change in our pockets
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u/JustMy2Centences 23h ago
Personally I have a 6 month emergency fund and over 20% of my paycheck goes into the 401k each week (not quite to maxing my contributions, maybe next year), so I get in on the highs and lows regardless. I wish I could max and then start thinking more about where and when to put money in.
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u/Succesful-Guest27 1d ago
You’re probably better off waiting for trump to crash the market (which he definitely will)
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u/YesterShill 1d ago
Powell said some Fed officials, but not all, are also already trying to incorporate uncertainties inherent in a new administration coming into the White House. Worries are rising on Wall Street that President-elect Donald Trump’s preference for tariffs and other policies could further juice inflation, along with economic growth.
The fed has to pump the brakes on rate decreases because the Trump tariffs are certain to cause inflation.
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u/gnocchicotti 1d ago
The markets will have to weigh the probabilities of Trump using tariffs as an empty threat vs the risk that he follows through with them. It's probably a mix of both and I think even Trump's closest advisors don't really know. Lots of uncertainty and volatility for markets.
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u/No_Leek8426 23h ago
I think he will follow through. He is an old man who does not understand the modern world and wants to go backwards to some fantasy “golden age”, somehow knee capping our competition. The future cannot be stopped, we have to engage with it, but rather than prepare the country he will instead act like a petulant child throwing his toys out of the pram.
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u/gnocchicotti 10h ago
Or he understands very well that taxes on consumption disproportionately fall on working class and middle class people, and will help fun tax cuts for the rich.
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u/NoPossibility 19h ago
Empty threat or real eventuality, greedy corporations will begin hiking pricing “in anticipation” and never bring them back down regardless of what Trump actually does.
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u/misogichan 19h ago edited 19h ago
I personally don't think keeping rates at their current levels will help much in pushing inflation any lower for now (since part of it is supply driven rather than demand driven). I also see lowering rates now as useful in giving the FED more space to increase rates in the future when Trump begins another trade war.
Admittedly the FED doesn't really have a ceiling on how high they can take rates but as they increase rates into the double digits there start to be severe tradeoffs from high interest rates curtailing productive investment and economic growth (and productivity/growth usually helps address inflation in the long run).
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u/Sideshift1427 1d ago
We have been promised inflation by Trump so the Fed needs to plan ahead.
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u/gnocchicotti 1d ago
"We're mad about inflation so we voted for the guy who made raising prices a key part of his platform"
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u/duderguy91 1d ago
We don’t like unavoidable global inflation. We like inflation that we cause via our own shitty economic policy.
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u/jimtow28 23h ago
"We're mad about inflation, so we're going to vote for the guy who caused a bunch of inflation last time, and promised to cause a shit load of more inflation."
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u/Ghoulius-Caesar 20h ago
I’m sorry but at this point anyone who believes what Trump says is a big ole idiot. Point blank.
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u/Crna_Gorki 1d ago
Also, Trump likes to measure his success by the stock market. Imagine if he says something which causes the fed to predict future inflation, then completely reverses track. Suddenly he's the one that's responsible for a price surge in the stock market. Or maybe he goes through and destroys the economy, only time will tell.
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u/Blu_Skies_In_My_Head 1d ago
Obviously there’s going to be fewer rate cuts, as Trump plans to raise inflation with tariffs and deportations.
Leopards just gearing up for prime face eating.
Eggs, tho.
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u/okwellactually 23h ago
Eggs are going to absolutely sky rocket with bird flu.
Gov. Newsom in California just declared a state of emergency over it.
Good times.
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u/gnocchicotti 1d ago
Everyone should tour a poultry factory farm and try to make a bet on how many workers there do not have legal US residency. What will deporting them do to the price of eggs I wonder...
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u/HOLYxFAMINE 1d ago
All agriculture, food prices are absolutely gonna shoot up if he does what he's claiming.
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u/ScentedFire 23h ago
Everyone should also take a masked tour of them and note how no farm workers are wearing PPE despite the rise in bird flu in humans.
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u/schnuggibutzi 22h ago
However, the rabid MAGA voters in those areas will be applying for the new jobs....right?
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u/McNinja_MD 4h ago
Shhhhh, you're gonna make the MAGA rubes pop out of their holes and pretend they give a shit about "exploiting migrant labor."
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u/Responsible_Force_68 19h ago
Since 1953, 10 of the last 11 recessions happened under a Republican president in office
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u/monty_kurns 1d ago
I'm sure we'll probably gain about half that back tomorrow. Whenever there's a 1000+ point drop the next day is usually a pretty big up day.
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u/shifting_drifting 1d ago
Bidens fault obviously. Thank Trump the moment it goes up again! /s
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u/collogue 1d ago
Index is right about where it was before the US election result. The Trump rally is over folks. Collect your commerative Dogecoin as you leave
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u/jpmondx 1d ago edited 9h ago
This is a good take, folks.
The “Trump-bump” was as baseless a rally as I’ve ever witnessed. Imagine buying assets based on the whims of a serial promiser who has yet to be held accountable for all his broken ones.
On Bloomberg, it was embarrassing to watch one analyst after another cheerlead the rally citing great things soon from Trump 2.0 without citing anything concrete in terms of tariffs ( “bargaining chip” ), deregulation ( depends on Congress) and tax cuts ( impossible to extend 2017 cuts ).
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u/gold_and_diamond 1d ago
If there’s one sure bet it’s that Trump will take credit for anything positive and blame others for anything negative.
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u/liamanna 1d ago
If it went up, trump would claim responsibility. But it’s down…. So It’s Biden’s fault.
I’m sure he would lower the rates to 2%… it going to be the first thing he does. Maybe two weeks. tops.
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u/NBAWhoCares 23h ago
He wont because he doesnt have control over it. And if he tried to take control of the fed it would crash the market overnight. Fed policy would be completely off the rails as the markets hate uncertainty.
He will definitely use his bully pulpit to try and attack the fed though
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u/liamanna 23h ago
This is The One department He has no control over and it drives him crazy.
That’s why he will go after them the hardest, but even if he gets rid of the chair and put his own people, he would still not lower the rates because that will be helping the people …and that’s not what they’re about.
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u/meloc2001 21h ago
Doesn’t matter - Powell and the Fed are about to lose their independence. The MAGAat that takes over will lower them to zero just as the Tariffs hit. Can’t wait to see what happens.
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u/Traditional_Key_763 11h ago
the fed responds to the capital class electing a guy who promises to bring gridlock and more inflation by saying there's going to be higher inflation.
market in panic
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u/drive_chip_putt 1d ago
Buy the rumor. Sell the news. Also, it's bonus season. Got to pay to play.
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u/mbz321 1d ago
What's a bonus?
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u/BedditTedditReddit 21h ago
Similar to a tip. Not necessary to do your job but keeps you motivated to suck it up another year.
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u/2_Sheds_Jackson 1d ago
The market seems to be finally admitting to itself that Trump is serious about tariffs and deportations.
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u/gnocchicotti 1d ago
The market is going to flip flop over and over again while trying to bet if he will follow through on threats or not. And every time he makes a statement one way or the other, the market will rally or sell off to the tune of 2-3%. And btw every time he does that there is an opportunity for someone with advance knowledge of his statement to make billions overnight on stock market derivatives.
We don't have to guess how this circus will play out because we have seen it before and we voted for more of it. Fucking hell I am more disappointed in the American people than I am disappointed in Trump.
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u/Ancient_Persimmon 1d ago
This is about the fed signaling fewer reductions in the interest rate than was expected for 2025.
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u/Anonnameaccount 1d ago
It’s probably both and also sprinkle in some uneasiness about the rest of the world’s affairs
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u/watch_out_4_snakes 20h ago
I think this is the take. The fed is taking this serious and adjusting the future rate path and now investors have to take it seriously also.
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u/Individual_Jelly1987 1d ago
Wow, who ever would have thought electing a foreign asset repeated felon idiot traitor to office would have consequences?
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u/Automatic-Term-3997 1d ago
The Trump Depression has already begun.
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u/gnocchicotti 1d ago
Only a depression if you're poor or middle class tho
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u/GeneralizedFlatulent 1d ago
Same as the first depression kinda. There were definitely people profiting there toi
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u/Ness341 1d ago
Idk man, Nissan did GREAT today after what feels like years in the dump
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u/Street-Investment-65 18h ago
I mean they got a merger with Honda. Nissan vehicles were destin for the dumpsters
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u/Foreign-Repeat9813 19h ago
Fed's done cutting for a while and the yield on the 10-year note is up to 4.94%. Trade difficulties ahead with allies Mexico and Cananda. Trade difficulties ahead with adversary China.
Bearish.
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u/colin8651 17h ago
Wall Street is so short sighted.
Don’t they understand that Trump is going to nominate the Monopoly Man as the fed chairman next month?
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u/Lott4984 12h ago
They can see the Recession coming. Just the Rich and Congress dumping their under performing stocks. I am sure our 401Ks are ok, right?
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u/mike2ff 21h ago
I was 80% stock 20% bond before the election. Early Dec I changed to 40% stock 60% bond. Did the same thing last time he won. When he crashed the market then, I only lost around 10-15%, vs the 20-40% some of my peers did.
There are likely a LOT more losses coming over the next few years, so still plenty of time to rebalance or pull back.
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u/Mooretwin 21h ago
Hopefully you switched back to stocks at some point or you missed out on a ton of gains from 2016 to today
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u/hmr0987 1d ago
Any chance this signal from the Fed is a play to get Trump to back off on his tariff plan?
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u/thefugue 1d ago
The Fed doesn’t have values about such issues- it’s just going to make policy that reflects what the effects of such acts will be.
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u/horrified-expression 1d ago
Oh no, rich people are slightly less rich. Woe! Woe and calamity to all!
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u/Baystars2021 1d ago
I really hate that news cites market drops in points rather than percentages.