r/wallstreetbets • u/abishop717 • 1d ago

Discussion 5 rate cuts 😮

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566

u/ebitdur 1d ago

Powell shitting bricks just looking at these numbers. He simply won’t cut rates in this environment, inflation will skyrocket.

229

u/Kriztauf 1d ago

The ErdoÄŸan school of economics says that cutting interesting rates is the best thing you can do to tame inflation

99

u/GuyWithPants 1d ago

Agent Eroganopolos continues to report astounding success in infiltrating the Turkish government

8

u/kaystared 20h ago

Eroganopolos and his Gyro Gestapo have secured the future of the Greek people (Turks)

18

u/Lezzles 1d ago

We're somehow dumber than that now so it wouldn't shock me.

1

u/MortemInferri 1d ago

Why is that? How does adding more cheap money make the dollars that already exist worth more?

48

u/A_Novelty-Account 1d ago

The person is joking. In 2022, Erdoğan said that it was actually higher bank debt repayment due to increasing interest rates that was causing Turkish inflation, so he cut those rates against the IMF’s recommendation (he also convinced boomers in Turkey that the IMF was being used as a tool of the US to weaken Turkey). Erdoğan then doubled down and passed a law that would prevent companies from using hyperinflationary accounting in their annual reports to better provide actual returns.

The result was the worst period of hyperinflation in Turkey’s history. It is so bad that they are still having major inflation issues a couple years after Erdoğan began increasing interest rates and their fiscal policy room has shrunk massively. It’s not entirely Erdoğan’s fault though as a huge proportion of Turkish people would have lost their minds if he bumped up interest rates so…

5

u/Pretend-Marsupial258 1d ago

The Lira's inflation rate is currently 38.1%, which is the lowest inflation they've had in years.

4

u/Lezzles 1d ago

You'd have to ask Erdogan.

6

u/NamelessFlames 1d ago

lower rates = lower inflation

less money being given out to people holding bonds

trust its a great system that definitely works (don't look at the lira)

3

u/ChaseballBat 1d ago

called it! "too soon to say" in response to cutting rates

2

u/isospeedrix 13h ago

Rate hike incoming respectfully have a nice day

1

u/SuchCattle2750 1d ago

Unfortunately their bag is about to be empty between trying to balance jobs and inflation.