Fed leaves rates unchanged, sticks with single cut in 2026 despite higher inflation

This is what happens when every major news network is deepthroating Trump's allies.

The despite applies to raising rates. Which is how the fed fights inflation, if they raise rates inflation goes down by taking money supply out of the system but the job market shrinks. So the real problem here is that the fed can’t do anything to fight our problems because our job numbers are so bad AND inflation is so bad. The economy is getting fucked on both ends and the levers to help it are fucked right now.

I think the "despite" is because they're *still* cutting rates, when they should really be considering *raising* rates. Or doing nothing.

Maybe they mean they are sticking with a single cut for 2026 instead of no cuts for 2026?

That’s why it’s “sticks with one cut despite higher inflation” as in they are still planning to cut once despite the higher than expected inflation (which would normally make the fed not want to cut at all)

It's possible the "despite" means they should raise rates instead of keeping them static

All of media is own by like two dipshits

Didn't he explicitly say this isn't stagflation and that it's an outdated term? That wouldn't change what it is, but he seemed dismissive.

I think he's more saying recession but you can't actually know you're in one until 6 months after one starts; it requires two consecutive quarters of negative GDP growth to be considered a recession. He did directly point out to the lack of job growth as well being basically 0.

>as if they’re pilots in a cockpit Good luck, we're all counting on you.

The Fed does have an effect on markets, though. They act like the shocks on a car. They have to ease the short-lived, chaotic changes and balance out the flow of liquidity to prevent the structural collapse that would come from a very rigid economy. The effect is supposed to be subtle. Trump, and so many other investment vultures, want the Fed to drop rates into the toilet and flood the markets with liquidity. They want to abuse the shocks on the car like they're bouncing a low-rider. They want sudden changes and volatility. They want to borrow an endless supply of c**** money to capitalize on it. More volatility means more opportunities to make money on the way up *and* on the way down. Having advance knowledge of when it's going to happen is how they maximize their gains while robbing the markets blind. The Fed certainly has the ability to do this. They did it before in 2018-2020. Those "money printer go brrr" memes were being shared for a reason. We're lucky that Powell's heart grew three times one day and he decided not to do Trump's bidding anymore. If Powell is replaced, the next guy Trump puts in there is going to absolutely destroy the dollar, I guarantee it. They'll send in a total lunatic.

Pretty sure the inflation is being led by the wage difference between wealthy people and working class and lower. I think middle class either became wealthy or crawled down to working class thug. Of course I'm completely ignorant in the economy especially when we don't have key point data. I do feel most people that are making money are just scheming rather than  investing in long term business or profits that makes production go forward, they try to find what's c**** and could be abused short term the  dip when it's no longer c**** enough to make too much money. But I'm just an ignorant fool making guesses.

I mean he hasn’t exactly been subtle about it. Jay Powell has done a remarkable job with what he’s had to work with, and been a steady immovable rock to Trump’s unstoppable force. Too bad his term is soon up. The Fed teaches its people its own history, so no doubt Powell is aware of how a weak Fed chair can contribute to disaster.

In 1973, there was an Arab oil embargo, which led to gas prices to substantially increase, which led to higher and higher inflation. Also, price controls, Vietnam War costs, and man made environmental disasters. See Super Fund sites.

Pssst. They blamed Biden for the previous inflation that Trump caused. 

Trump and Nixon were pen pals so he probably gave him some tips on how to fk the country royally.

If someone in the White House just ~~shut the hell~~ gets locked the hell up sometimes, things would be so much better.

It’s not his words that got us here, but his actions. 

Twice Trump has come into office on a safe glidepath where he didn't really need to do anything, and twice he's managed to completely unravel things. In his first term he admittedly started messing things up later in the game, but he wasted no time in the second term. Whoever comes after him is going to have quite the mess to clean up, but even if they do everything right, even two terms won't be enough time to fix what's been done.

Right, he would be seen as more “successful” doing nothing and riding coattails like he did his first term. Literally doing nothing would be progress.

The inflation during Bidens temr was directly caused by trumps policies in his first term. Soo we have that to look forward to. 

Same. Headline is funky. ‘Despite’ is a bold choice for just such a close headline juxtaposition. The economy was basically that point in the campfire where the embers were still too hot for marshmallows but Trump came along and kept throwing logs on thinking an open flame is better. JPow is the only reason why Trump can’t find the gas can. A rate cut would be giving Trump one splash of the gas can.

The "despite" modifies the higher interest rate assumption. If the Fed raises rates, inflation falls. If the Fed lowers rate, inflation rises. If the Fed keeps the rate the same, despite the fact that inflation is rising, then they are doing the wrong thing by sitting on their hands.

Very unlikely tbh

What are you on about? HYSA's have been 3-4% for years now.