If Tariffs are truly creating inflation (bare with me conservatives) then shouldn't the Fed be lowering interest rates to offset it?

[Ariesman81]

What's the likelihood Trump is pointing out the manipulation by the Fed?

[OneViewpoint]

tRump’s tariffs are not normal inflation from an overheated economy. The tariffs are an artificial inflation by edict of a moron. Interest rates have zero to do with it. Raise rates, lower rates, no impact. The only thing that impacts tariffs is either imposing them or not imposing them.

[Ariesman81]

Lowering rates would actually increase borrowing and thus, drive inflation higher.

[OneViewpoint]

@ariesman81,

Damn you dumb. You're applying a tourniquet to your arm when your foot got chopped off.

1.) Interest rates will do zero to impact inflation from broadly applied tariffs imposed by edict of an imbecile like tRump. Raise rates or lower rates, interest rates have nothing whatsoever to do with artificially imposed price increases due to tariffs. You know, communism where the government tells the people what the prices are gonna be. There is no economics at play in that game. Only the disturbed mind of a profoundly stupid old man-baby.

2.) You are trying to apply simplistic economic theory from an Economics 101 textbook that describes normal behavior in ideal circumstances to a situation that is anything but "normal".

a.) People are living paycheck to paycheck after 40 years of real income erosion.
b.) The debt markets are collapsing at the same time as the stock market and real estate market.
c.) The banks are raising the alarm over insufficient cash reserves due to mounting bad debt.
d.) In this environment, no one is borrowing. Not businesses. Consumers have stopped spending.
e.) If you think this uncertainty is gonna create job growth you're monumentally stupid. Who is gonna build new production capacity in complete uncertainty and chaos as the global economy crashes?
f.) Interest rates are largely irrelevant at the moment. Interest rates are not the problem or the solution.
g.) All of the above point to the fact that we are heading towards a global depression, not another ho hum recession.

All of this has been set in motion in less than 90 days by the most stupid criminal with severe mental disorders to ever occupy the White House. And his MAGA cult cheers him on because they are too stupid to see he's leading them off a cliff.

[Ariesman81]

I agree with everything you stated. The great American reset. 👍🏻

[OneViewpoint]

OK wiseass, explain how this "reset" is going to benefit you. What comes after you and tour MAGA buddies "burn it down"? What's the plan that makes life wonderful for a White Christian Homeland in post apocalyptic world? I really want to hear what you think is gonna happen. In detail.

[DrPepper12]

Why would the fed act in EITHER DIRECTION when Trump is so indecisive, mercurial and likely to change his mind 11 more times to benefit his insider trading schemes?

Look:

The stock market plummeting

The dollar collapsing

Consumer confidence cratering

Inflation rising

Bond yields exploding

ALL due to trump's titanically disastrous decisions!! Do you KNOW how difficult it is to achieve ALL of that at the same time?

And we're fucking TIRED of it.

[Ariesman81]

But wait... isn't this when the Fed should stimulate the economy? Or maybe we're just dealing with the consequences of prior administrations.

[DrPepper12]

No. This is Trump's economy. He's said so dozens of times

[seeyounexttuesday]

100% likelihood Trump is pointing out manipulation by the fed. Inflation is ONLY caused by printing fiat currency, not by Tariffs. All price increases are not inflation.

[Ariesman81]

Fuck the status quo!

[BonzoInBitburg]

Tariffs 100% lead to inflation. It's a sales tax paid by the importer passed on to the consumer.

[seeyounexttuesday]

@BonzoInBitburg Inflation is an increase in the supply of FIAT money. Do you call sales tax inflation? Do you call corporate taxes passed onto consumers inflation? Is a government mandating a $15 minimum wage inflation?

[BonzoInBitburg]

Corporate taxes lead to inflation. Anything that costs my business more money gets passed on to the consumer to maintain my profit margins. If I'm buying T-shirts from China for $10 and selling them for $20 and then get hit with a 100% tariff, those shirts will now cost me $20 and I'll have to sell them for $40 to maintain my percentages. That my friend is how business works and that is inflation

[seeyounexttuesday]

@BonzoInBitburg so now you'd better buy your shirts from US manufacturers.

[Ariesman81]

The Fed is very good at treating the symptoms of the disease it created.

[BonzoInBitburg]

Only if they could beat $20. There are lots of other countries to buy shirts from. It's all about dollars and moving the most product

[exitseven]

The truth is the rate of inflation is going down. Gas prices are lower and so is the price of groceries. Trump may be right about the fed. Powell was nominated by President Trump and his term is over May 2026. Trump is not likely to fire him.

[BonzoInBitburg]

High inflation and low interest rates lead to stagflation. It happened in the 70s and then it leads to super high interest rates

[Dargil]

Only President Trump's results matter. Politics and statesmanship are like making sausage. See you at the midterms.

[RedInnocent69]

All bets are off when the Government gets involved in setting prices, which they do with tariffs

[NaultD]

That's like putting water on a oil fire.