.5% cut more coming, see how the markets take it and how long it takes for banks to cut loan rates. Not enough for refinancing loans yet but hope more cuts to come. Sept and Oct shaky months history wise for the markets, see how things settle in.

They don't seem too excited about it.

Mistake IMO.

It was a mistake, according to Charles Payne this morning. He said the bottom line is that inflation is very bad on people and what they begrudgingly are doing is not addressing the bottom line.

Charles knows his stuff.

He said what they should have done a while back, should have been the opposite of what they've relented to...but with my limited understanding of his financial world, I could only get the gist of what he was detailing.


There are those here who well would know what he was saying if they heard him.

Purely political, the Fed must think Harris is going to win.

Gee ....I wonder why ......pure politics

She's not going to win but she will be crowned same as Biden in 2020.

it's a bad move for the country would have been better to raise it.

Should have maybe did a quarter point at the last meeting and followed up with another quarter at this meeting but so far markets are not going wild either way. To soon to tell I have a couple big financial decisions to make right now not sure what to do.

Most likely the market had factored the .5% in prior to the announcement. Probably waiting even more for the job creation and UE come early October to see what the trend looks like. The increase in new jobs is in a narrow range for the market. Too few and more thoughts of a recession, too many and more thoughts of inflation continuing.

Bryce

Yep, somebody gets it.

Should have raised it another half a percent or so

My fear is when, not if, inflation spikes up again it'll be harder this time to get it to go back down again.

I was talking about this yesterday and I said that I feared they would go with 50bp instead of 25. I'd hoped I was wrong.

they're probably better off waiting for the inevitable "correction" to those numbers that will be coming out AFTER the election; before making any big moves*.

*I'm NOT a financial guy. Don't take anything I say as advice.

How can we believe any job numbers. They only revised April 2023 through March 2024 down 800,00 and that's still a lie.

Look at the help wanted ads. Glad I could help.

"We hear every day from our member companies—of every size and industry, across nearly every state—that they’re facing unprecedented challenges trying to find enough workers to fill open jobs. Right now, the latest data shows that we have 8.2 million job openings in the U.S. but only 7.2 million unemployed workers.

We have a lot of jobs but not enough workers to fill them. If every unemployed person in the country found a job, we would still have millions of open jobs. "

Source: U.S. Chamber of Commerce July 2024.

BTW This is inflationary. ( not by Milton though )

Danvee…Short term rates drop, but the forward curve already had this expected rate cut baked in. Longer term rates didn’t change one bit.
Term loans are priced to that ‘forward rate curve and if the curve didnt change then don’t expect loan rates to change. The over night borrowing rate the fed lowered today is just the very start of that forward curve.
Deposit rates and other things tied to short term rates may move but not longer term rates.
Note the ten year treasury yield actually rose today.
No reason to lower loan rates.

Super sized rate cut. NOT GOOD!!!

If you believe anything they say your a da.

We will see where this does land and when. High stock market, slowing hiring but still historically low UE, and much of this year the wage increases have out paced the inflation. With a consumer driven economy this Christmas season will show a lot where consumer confidence and purchasing desires are at. Estimated job growth was within 10k of expectations and UE is stable so to the market things fell right where they anticipated. With the larger than interest rate drop that many wanted we will wait to see how the other rate changes planned for 2024 will go. Most estimates look at 4-4.5% being the lower end so the return to below 2 is not in our near future. There are trillions of dollars investors have in cash and bonds, with interest rates in the moderate range and economy and markets looking stable they have more options to their funds in.

Bryce