kagemusha2662
Well-Known Member
We're in a weird spot right now where inflation is already high but unemployment is high as well. Lowering interest rates will increase employment, but it will also lead to an increase in inflation which has shown over the past 4 years to generally outpace wage increases. In the last Fed meeting, Powell seemed to indicate that the tariff uncertainty will lead to a more hawkish stance rather than a dovish stance, which is what they didn't want to do because they as well as most people do want interest rates down. I think if there were no tariffs and inflation was truly going down, interest rate cut would have happened in March and even more in subsequent months.Meh. Lots of assumptions in this post. Id say inflation and interest rates are the primary culprit. New car prices are up across the board for everything.
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