The economic situation in the United States?

[haungjingyi]

Interest rate cuts may fail to stimulate the US job market. What do you think?

[BonzoInBitburg]

The Fed is in a really really tough spot. Inflation is hovering around 3%, a full percent above the target rate of 2%. Lowering interest rates increases inflation and if the Supreme Court doesn't uphold lower courts rulings and overturn the tariffs, US companies will be forced to raise prices because they can no longer afford to absorb the costs of tariffs adding to more inflation. Mortgage rates will not go down because they are tied to the bond market and US debt is out of control so bond yields are rising leading to higher mortgage rates. The job market won't improve until all the trade agreements that Trump has claimed exist, become actual agreements and are signed so that the US can actually trade with other countries again. So far, no country Trump has announced agreements with have actually signed an agreement because the paperwork for these agreements doesn't exist yet according to Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick who admitted this week that they haven't finalized anything yet. The US economy is in a really tough spot right now and it's going to take a while to unwind this mess.

[exitseven]

it is the foreign companies absorbing the tariffs. In the real world if you sell a product to a foreign country and there is a tariff imposed on it if you do not eat the tariff you will not sell much.

[BonzoInBitburg]

@exitseven That is incorrect. I exported to the US for 25 years and never once paid tariffs. My clients always paid. When foreign companies ship to the US, your SIN or Business ID is on the manifest and you get an invoice from the government. US importers are absorbing the tariffs for now. Foreign companies wouldn't be interested in doing business in the US if they had to pay tariffs and are would ship to more business friendly countries.

[exitseven]

After the tarriffs is your product more expensive than a similar product made in US?

[BonzoInBitburg]

@exitseven Slightly higher price for much better quality. The US has never really been a high end manufacturer in my lifetime and my competition in the US came from Germany.

[exitseven]

I do not know what the product is but in my experience American made products are superior in every way except for price. i have electronics from the 60s, tools that I bought in high school, boots i have had for 30 years and all my made in USA cars had over 200K miles on them. I saw my wife's 1991 Ford Country Squire driving down the street a few months ago. I knew it was her old car because the back window was still missing.

[OneViewpoint]

ROFL, this is NOT a normal economy. This is NOT free market Capitalism at work. This is so far outside the Federal Reserve Bank's charter and purpose, they are almost irrelevant and powerless to stop the damage.

This is the "Communism" that the Reich Wing preached against for decades... until they seized power.

Now we have a centrally planned economy under a thin skinned Autocrat with the IQ of a bag of rocks and zero understanding of economics at any level. He has launched a global trade war he can't win and isolationist / imperialist policies that have left the US with no friends or allies. We have lost all credibility and trust.

• There is a "brain drain" underway.
• Investors are running away from volatility they can't control & risk they can't predict.
• AI has been unleashed across all sectors of the economy with zero laws in place to either regulate it or adjudicate disputes arising from its use in our courts.
• The agricultural sector has been devastated by tariffs and stupid immigration political theater. Those foreign markets are closed to the US for good.
• Defense contracts are being cancelled by foreign buyers on a daily basis. Those buyers are never coming back to a seller they can't trust in time of war.
• Unemployment is starting to escalate.

And the list goes on and on. Like I said, tRump and Republicans have caused so much damage at the Macro level and almost all of it has not a fucking thing to do with money supply or the cost of money. The Fed and Treasury may as well go sip margaritas on a beach in Cancun and wait for the next depression. It won't be a long wait.

[Agape93]

Shit is getting too expensive and pay isn't matching or surpassing inflation. Most people can't afford a house, or even $300 emergency expense. It sucks.

[mysteriousNicholas]

I'm hoping the stock market recession or crash on 2008 levels, is finally upon us I've been wishing all year and for years now even since the 2020 crash the last 2020 recession since 😃😅 I want to buy the dip whenever the dip ever dips if it ever dips

[loveslongnails]

Do you seriously think a 1/4 or 1/2 a point drop is suddenly going to put money in people's pocket? Or make a potential homebuyer think "wow, that 500k home is now SO much more affordable at 6.00% instead of 6.5%? LOL

It won't even effect the JOBS market. Do you think corporations are suddenly going to go on a job creation spree because of minute interest rate decrease?

[exitseven]

I think thst between the rate cuts and the trillions of dollars that will be invested in the US as well as the new tax cuts I thionk the economy will be booming.

[DryGermanGuy]

If you still believe in these bombastic trillions, I have a bridge to sell you...

[exitseven]

@DryGermanGuy Why would business leaders come to the White House to negotiate with the President if they were not serious?

[DryGermanGuy]

They know Trump has the attention span of a goldfish. So they are pandering to him with some dumb tchotchkes until he moves on to the next topic to throw a tantrum about.

[exitseven]

@DryGermanGuy if thats your story, stick to it.

[DryGermanGuy]

It's actually not my story at all. Just realize what came true of the bombastic announcements in the first Trump administration and you have a pretty good preview of what will happen in the second administration.

[exitseven]

@DryGermanGuy In Trumps first term he got more done than any other president in my lifetime. Imagine what he could have done if he did not have to fight multiple attempts ap impeachments and a hostile press.
This term is like the last one on steroids. I am looking forward to seeing his policies go into effect and Make America Great Again.

[Anonymous]

I think it is getting worse due to the murderous, rapist, convicted criminal mentally ill "genius" we have as a President.

[slatyb]

Trump is destroying the economy.

[exitseven]

did you see the GDP for this quarter? Did you notice how the stock market has been performing?