Today, the Federal Reserve did not elect to cut interest rates as widely expected by markets and analysts, but Powell made it very clear that they are preparing to pivot in September.

According to an official statement from the Fed’s Federal Open Market Committee (FOMC):


Recent indicators suggest that economic activity has continued to expand at a solid pace. Job gains have moderated, and the unemployment rate has moved up but remains low. Inflation has eased over the past year but remains somewhat elevated. In recent months, there has been some further progress toward the Committee’s 2 percent inflation objective.

The Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run. The Committee judges that the risks to achieving its employment and inflation goals continue to move into better balance. The economic outlook is uncertain, and the Committee is attentive to the risks to both sides of its dual mandate.

In support of its goals, the Committee decided to maintain the target range for the federal funds rate at 5-1/4 to 5-1/2 percent. In considering any adjustments to the target range for the federal funds rate, the Committee will carefully assess incoming data, the evolving outlook, and the balance of risks. The Committee does not expect it will be appropriate to reduce the target range until it has gained greater confidence that inflation is moving sustainably toward 2 percent. In addition, the Committee will continue reducing its holdings of Treasury securities and agency debt and agency mortgage‑backed securities. The Committee is strongly committed to returning inflation to its 2 percent objective.

In assessing the appropriate stance of monetary policy, the Committee will continue to monitor the implications of incoming information for the economic outlook. The Committee would be prepared to adjust the stance of monetary policy as appropriate if risks emerge that could impede the attainment of the Committee’s goals. The Committee’s assessments will take into account a wide range of information, including readings on labor market conditions, inflation pressures and inflation expectations, and financial and international developments.


However, it is basically guaranteed that the first rate cut will occur in September, at least according to Fed monitors that is. This pivot will in all likelihood be a .25% cut, according to the Fed Rate Monitor Tool.

https://www.youtube.com/watch?v=f9jcWffR12k&t=211s

During his speech, Fed Chair Jerome Powell said a rate cut in September is highly likely.

If that test is met, a reduction in our policy rate could be on the table as soon as the next meeting in September.

The question will be whether the totality of the data, the evolving outlook and the balance of risks are consistent with rising confidence on inflation and maintaining a solid labor market.

Powell said

AUTHOR COMMENTARY

A .25% rate cut in September will hardly be felt and will do nothing to help the average American, as rate cuts themselves take some time for them to percolate throughout the economy. We can probably expect a few more cuts perhaps in 2025 but the days of 0% are at end for the foreseeable future.


[7] Who goeth a warfare any time at his own charges? who planteth a vineyard, and eateth not of the fruit thereof? or who feedeth a flock, and eateth not of the milk of the flock? [8] Say I these things as a man? or saith not the law the same also? [9] For it is written in the law of Moses, Thou shalt not muzzle the mouth of the ox that treadeth out the corn. Doth God take care for oxen? [10] Or saith he it altogether for our sakes? For our sakes, no doubt, this is written: that he that ploweth should plow in hope; and that he that thresheth in hope should be partaker of his hope. (1 Corinthians 9:7-10).

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5 Comments

  • Honestly if you really know what the Feral (federal) Reserve is and what it does, then why be concerned about the cocksuckers.

  • We animate the proclamation of these institutions i.e. The Feral Reserve by entertaining their suggestions on how we should react to said suggestions.

    Poppy Cock. If the Feral (Federal) Reserve is not as a matter of the policies announced by them, representing the needs of the society they claim to represent.

    Then why should anyone have an interest in what they have to say?

    • By animation I mean we repeat their intent by giving credence to their dictat. If their intent is to bankrupt every reader and the rest of the country of this meager warning then why be concerned about their economic policy initiatives? If those initiatives understood, mean our economic destruction to ensure national security.

      Then who’s
      ‘security’ are we concerned with?

      The governments security, or the countries security?

      The People represented are the Country, the government is the State. These are not the same things.

      National Security as described here is the well-being of the government; the People of the Country the government represents be damned.

  • My fellow countrymen, You will get the government you deserve, as long as Your willing too put up with it.

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