The Federal Reserve Is Out of Tricks

[Wounded Bear]

2. Corrollary to 'when your only tool is a hammer'...

The Fed's problem is that it only has one tool to try and temper two different problems, inflation and unemployment.

Currently prices are rising, driving up inflation which would usually require increases in rates. But unemployment is on the rise as well, with the gov't sluffing off thousands of workers and companies starting to feel the effects of the tariffs and shedding workers as well.

trump is pressuring for a rate decrease, which will not help with inflation and while it might encourage employers to hire, the inflationary pressure of the tariffs will dampen that.

Looks like we're heading into a stagflationary cycle with inflation and unemployment both rising over the next few months.

Hunker down and cut your expenses where you can, it's gonna be a rough ride, especially for us folks on the lower parts of the income inequality graphs.