Replies to post #110334 on Savvy Trades and Investments

[gilead23]

The rate cut expectations always seemed bizarre. This is from todays statement.

“The Committee does not expect it will be appropriate to reduce the target range until it has gained greater confidence that inflation is moving sustainably toward 2 percent.”


I don’t see the move as clearly sustainable.

I mean inflation ticked up from 3 to 3.4% in December. The events in the Red Sea are inflationary, and commodities (oil, copper lumber) are well off their lows. Is it really a shock that they aren’t falling over themselves to cut rates in an economy whose preliminary Q4 read suggested 3% growth? They will probably be behind the curve cutting, but I’d rather have that than revisit 2022’s inflation.