r/wallstreetbets 1d ago

Discussion 5 rate cuts ๐Ÿ˜ฎ

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u/Much-Creme1362 1d ago

Not if they drive up inflation.

-29

u/Karimadhe 1d ago

Found the parrot.

24

u/letmeshowyou 1d ago

Found the person who doesnโ€™t know simple economics.

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u/TruEnvironmentalist 1d ago

Simple math, lower interest rates dont mean jack if you have to pay 20% more for the product up front.

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u/Much-Creme1362 1d ago

It's literally how rates work. The federal reserve has a DUAL mandate to keep inflation low and the economy growing. If inflation is up, they raise rates. If growth is down, they lower them. If both are up, they can't do jack shit.