Krasnov Put Jerome Powell In A No Win Situation

[gab13by13]

The Fed wants to keep employment high and inflation low.

With Krasnov's tariffs, economists are predicting big time unemployment, near zero GDP, a recession.

With Krasnov's tariffs economists are predicting inflation somewhere between 3 - 5 percent, its goal to lower interest rates is 2%.

If Jerome raises interest rates he may help cause a recession. If he lowers interest rates he may cause inflation to rise to 5% which may help cause a recession.

Jerome has a 3rd choice, do nothing and ride this out.

We all know that Krasnov wants lower interest rates so I am guessing that's what Jerome will do.

I saw this bumper sticker today - ARE WE GREAT YET?

https://www.msn.com/en-us/money/markets/federal-reserve-is-unlikely-to-rescue-markets-and-economy-from-tariff-turmoil-anytime-soon/ar-AA1CfkfQ?ocid=msedgdhp&pc=HCTS&cvid=e1bd259ee2cb403897c0a9f6d204a813&ei=48

[Lovie777]

1. Ride it out....

he’s one of smarter people unlike shithole and his fucked up administration.

[cachukis]

2. The squall is still far enough away to bide.

[ananda]

3. Causing a "recession"?

Really?

That is the understatement of the year right now.

[iemanja]

4. He's not cutting rates now

And he’s not afraid of Trump. He made clear he will not leave if Trump tries to fire him.

[roamer65]

5. He can't cut rates right now without tanking markets and the dollar.

An emergency cut and all hell will break loose.

Maybe 25 bps at next Fed mtg…maybe.

[Bernardo de La Paz]

6. Half right I think. If he cut rates, market would go up some, but dollar go down some

Cutting rates means the dollar earns less so some money gets moved out of the dollar to other currencies.

At the top in February, there is some sense that the market was disappointed inflation was a bit stubborn and the fed wouldn't cut as much as hoped.

Now there is a possibility of substantial inflation, so a rate cut has become less likely in the short term (say six months).

[roamer65]

8. An emergency cut will signal recognition of the recession.

Markets will drop, like in 2008.

[flamingdem]

7. Tomorrow is the jobs report

The damage will probably show later though