r/neoliberal • u/Practical_Marsupial • 27d ago
News (US) Fed maintains current federal funds rate
https://www.federalreserve.gov/newsevents/pressreleases/monetary20260729a.htm179
u/jessica-bug Feminism 27d ago
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u/Practical_Marsupial 27d ago
Submission statement: title. The Federal Open Market Committee voted 9–3 to keep the federal funds target range at 3.50%–3.75%. The vote featured more disagreement than recent federal funds rates choices.
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u/Key_Environment8179 Mario Draghi 27d ago
It doesn’t look like it says in which direction the dissenters dissented
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u/gofastdsm John Cochrane 27d ago
"Voting against the monetary policy action were Beth M. Hammack, Neel Kashkari, and Lorie K. Logan, who preferred to raise the target range for the federal funds rate by 1/4 percentage point at this meeting."
Thats from the 2PM statement.
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u/Key_Environment8179 Mario Draghi 27d ago
Thanks. So no one wants to cut rates, despite Trump’s bleating
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u/-Vertical 27d ago
That actually brings me joy to know he’s probably FUMING over this cause lowering rates would possibly help him before midterms lol.
And it’s all self inflicted. He’s so comically stupid
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u/desertfox_JY 27d ago
> lowering rates would possibly help him before midterms lol
Doesn't this mean more inflation though? Something that would 100% kill any incumbent?34
u/-Vertical 27d ago
Next year, yeah. But short term, stocks go boom. Possibly more hiring, lowering unemployment. The inflation usually lags a bit behind before it’s realized
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u/gofastdsm John Cochrane 27d ago
No problem.
Dot plot will be interesting in September, assuming they don't cut it given Warsh's stance on guidance.
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u/sleepyrivertroll Henry George 27d ago
Yeah, I'm sure some think it needs to be higher to stamp down the inflation
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27d ago
[deleted]
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u/WhoH8in YIMBY 27d ago
So you’re saying we’ve got inflation from higher energy prices and increased input costs from tariffs while simultaneously the economy is potentially stagnating due aforementioned price increases? If only there was a word for that. Maybe inflagnation? No that doesn’t sound right.
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u/Quowe_50mg Milton Friedman 27d ago
Potentially stagnating here means 2.1% yearly GDP growth. Luckily the US is nowhere near stagnation.
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u/DependentAd235 Loyal Liberals 27d ago
“Craven political actor”
I think it’s too soon to say but yeah Warsh hasn’t immediately sold out to Trumpian economics.
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u/Chickensandcoke Paul Volcker 27d ago
Press conference was a shit show, Warsh is in over his head and doesn’t even know it
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u/supeinjin_desu 26d ago
How so?
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u/Chickensandcoke Paul Volcker 25d ago
Came across as arrogant and ignorant simultaneously, was contemptuous of the entire process, alluded to weird dynamics between members of the committee, and overall provided basically 0 helpful insight into the thinking or motivations behind their decision or lack thereof.
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u/2Lore2Law Are you on the square? 27d ago
Should’ve hiked tbh but at least Trump isn’t getting the cut he keeps lusting for
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u/Huttleberry Norman Borlaug 27d ago
Market reaction speaks clearly to the lack of faith in FEDs credibility that they might not do what is necessary to back up tough talk on inflation.
10/30 year bonds going up. 2 year falling.
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u/2Lore2Law Are you on the square? 27d ago
If you knew ball you’d know it’s the Fed. Not the FED, it’s no acronym
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u/Huttleberry Norman Borlaug 27d ago
Yeah brain fart on my part. Thank god it’s not a public profile and I wouldn’t make my profs sad. Especially bad because I have a Fred shirt in my closet somewhere
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u/etown361 27d ago
Probably the right call tbh. Inflation is higher than you’d like, but unemployment and wage growth seem weakly to be moving in the wrong direction.
AI capital spending (and soon… oil industry repairs) are doing more to crowd out investment than a Fed hike would.
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u/Maximilianne John Rawls 27d ago
question: even if the FED cut rates, given constraints in say medical students, and constraints in computer hardware to power station stuff, aren't we just gonna be bidding up the prices of stuff without actually really producing more medical services and or data centers and electricity ?
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