I agree completely, the central banks, notably the Fed, are clearly quite keen to cut rates. The question I have is why? if the data is accurate, and that is a different issue, but if true, then the economy seems to be performing pretty well with the current rate structure and the employment situation remains solid. after all, Friday's NFP at 175K, while lower than expected is not disastrous! so what is driving this overreaching desire to cut rates? My view is Powell, who is a PE guy, may be hearing a lot from his pals at Carlyle and the other PE firms that high rates are killing them and so he is trying to respond to that. cynical? yes. but prove me wrong!
Yes Friday's number was fine. Weakness again in the government sector, just like in q1 gdp. That should bounce back. Powell could be worried about p.e, and let's not forget SVB happened, NYC commercial real estate etc.
Someone has convinced him that rates are restrictive where as the reality is they feel neutralish. In his defence....He does have to answer to congress who want him to always cut, he does have a dual mandate, and let's not forget he has had to report to Trump once before as well hehe:) It's a balancing act. But he had made us all believe that he was going to be Volcker style and kill inflation:) on that front the job is not done yet sir....just my humble thoughts. and yours too of course:)
Always appreciate your comments Andy. Thank you for engaging with the content. Truly...
I agree completely, the central banks, notably the Fed, are clearly quite keen to cut rates. The question I have is why? if the data is accurate, and that is a different issue, but if true, then the economy seems to be performing pretty well with the current rate structure and the employment situation remains solid. after all, Friday's NFP at 175K, while lower than expected is not disastrous! so what is driving this overreaching desire to cut rates? My view is Powell, who is a PE guy, may be hearing a lot from his pals at Carlyle and the other PE firms that high rates are killing them and so he is trying to respond to that. cynical? yes. but prove me wrong!
Yes Friday's number was fine. Weakness again in the government sector, just like in q1 gdp. That should bounce back. Powell could be worried about p.e, and let's not forget SVB happened, NYC commercial real estate etc.
Someone has convinced him that rates are restrictive where as the reality is they feel neutralish. In his defence....He does have to answer to congress who want him to always cut, he does have a dual mandate, and let's not forget he has had to report to Trump once before as well hehe:) It's a balancing act. But he had made us all believe that he was going to be Volcker style and kill inflation:) on that front the job is not done yet sir....just my humble thoughts. and yours too of course:)
Always appreciate your comments Andy. Thank you for engaging with the content. Truly...