Who’s winning?

[Jim in CT]

Originally Posted by Pete F.

Stocks are hitting record highs and layoffs and unemployment are at 50-year lows. Believe it or not, the Federal Reserve is prepared to cut interest rates soon because it’s worried about the economy.

Trump, who demanded the independently run central bank cut rates, is likely getting his wish, because his policies have the Fed concerned.

The central bank thinks White House trade wars with China and other countries hurt farmers, manufacturers and exporters, slowed the U.S. economy and reduced business investment.

With the reduction in business investment, investors still need a place for money and have put it in the market. That's why the Russell 2000 doesn't mirror the Dow. Big caps are safer than small caps. S+P was inside and the Nasdaq was down.

But keep believing the Stable Genius

you’re talking about the Phillips Curve, the belief that at some point, low unemployment causes runaway inflation which can be countered by lowering interest rates.

here’s a video, where AOC of all people, gets Fed Chair Powell to say very explicitly, that the link between low unemployment and inflation is much weaker than we had thought. son not sure where you’re getting that the fed is worried about the economy. other than orange man bad, that is...

so who are you believing, exactly, when you say the fed is worried about the health of our economy?


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