The Federal Reserve cut its key interest rate by a quarter-point in response to a steady decline in once-high inflation that angered Americans and helped drive Trump’s election victory.
  • Joker@sh.itjust.worksOPEnglish
    183·
    4 hours ago

    In my opinion, something is going to break within 6 months.

    The inflation is still high and the danger of recession is still here.

    • ultranaut@lemmy.world
      3·
      2 hours ago

      I think it will take longer than that, there’s still a lot of rich people who don’t think Trump will really do the tariffs or the mass deportation. Once it becomes clear that is really happening the economy will likely start getting all kinds of messed up fast.

      Also, as others have told you, inflation is actually low again currently and that is why rates are coming down now. This is the “soft landing” that everyone was talking about, just in time for Trump to take the helm.

    • n2burns@lemmy.ca
      102·
      4 hours ago

      The inflation is still high

      Where are you getting that from? That’s not what the numbers say.

        • walden@sub.wetshaving.social
          13·
          3 hours ago

          That isn’t an indicator of current inflation. Past inflation, maybe.

          People confuse “everything is expensive” with “inflation is currently high”. It’s an understandable misunderstanding, and part of the reason why Kamala lost.

          • PriorityMotif@lemmy.world
            25·
            2 hours ago

            It’s because of hysteretic effects from 4 years ago when they stopped production of cars and fewer cars were sold because people were staying home. Then there was a supply chain crisis because of the aforementioned shutdown. It’s inflation because the dollar can buy less than it used to. Things being more expensive is inflation. You’re confusing inflation rate with inflation.

            • n2burns@lemmy.ca
              2·
              2 hours ago

              Inflation rate and inflation are the same. You’re confusing inflation with affordability.

              • PriorityMotif@lemmy.world
                11·
                1 hour ago

                That’s literally the definition of inflation. “Inflation is a loss of purchasing power that reflects a rise in prices for goods and services over time.”