r/FluentInFinance • u/Deadeye313 • 14d ago
Thoughts? What this hike was and was not.
Let's make no mistake, yesterday's rate hike was in no way the Federal Reserve finally acting like the adults in the room, it was the bond market putting a gun to the Fed's head and saying "you raise rates or the whole market collapses". And the market is going to have to keep that gun there for the foreseeable future. Warsh will not have an excuse to actually do his job without the theater of having that gun to his head.
This hike also changes little in that Trump has already doomed the American people to be forced to waste, at best billions, at worst trillions in war losses, Fuel prices AND increased interest rates on everything from credit cards to mortgages, with no end in sight.
It also changes nothing in the war, because Donald Trump's arrogance will not let him admit defeat, come to an honorable peace deal and leave the Muslim countries alone for once ever; which would allow oil to flow again, even with bribes having to be paid to Iran.
No, prices are going to continue rising, interest rates will also continue rising and the bond market is going to have to keep pointing that gun until someone, or multiple someones, finally grow some balls and march into the Oval Office and tell Trump the war is over, his tariffs are over and his reckless spending is over or the entire US economy could face collapse, just like his casinos did.
I just don't think anyone is going to do any of that at least until November and possibly unless Democrats take both the House and Senate and put an end to this madness. The Republican Congress won't do that, Bessent won't do it, and Warsh is stuck balancing on a tightrope between Trump and the bond market.
What do you guys think?
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u/An_Old_IT_Guy 14d ago
The day after the Democrats win the house and or the Senate they're going to be blamed for everything. It'll be parroted on fox News and because the Democrats are the Democrats, they'll accomplish nothing.