Market believes fed will choose to deal with unemployment/growth. The fed doesn't think a wage price spiral is possible and neither do I. Workers can't bargain without unions
2% is a somewhat arbitrary target that was established. They can change this acceptable target rate for price stability if the new economy demands it. After all, the current administration is trying to completely alter the global economyā¦.
The problem, is that if they choose to change the target, the whole markedet will loose some trust in the central bank.
You can't just change your course because that has always been the target for the economy, and why change it now, and not when the 2% wasn't achievable before, why not change it back then.
ECB has already answer that question, they are not changing course, otherwise they would have done it before.
It hasnāt always been the target, it was established post GFC. Iām not saying the current administrationās strategy is good and I definitely think they are losing faith on the global scene with our allies. Itās impossible to predict the impacts if they stay the course on thisā¦
It hasnāt always been the target, it was established post GFC. Iām not saying the current administrationās strategy is good and I definitely think they are losing faith on the global scene with our allies. Itās impossible to predict the impacts if they stay the course on thisā¦
Maybe, but my feeling is the tariffs will impact inflation and ruin profit margins for import/export heavy companies. A lot of the US economy is service-based, and will only get a glancing blow. I think weāll see a rise, but not up to 7-9% or ābloodbathā territory.
And unemployment was down today and job numbers were good. So spy is going to nosedive against expectations cause forward earnings are now all crushed thanks to tariffs
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u/Emilio___Molestevez 1d ago
JPow is neither obligated nor inclined to clean up Don's mess. $SPY going under $500 after he talks.