Don’t like #Bidenomics much? Hate those interest rates we’re all crawling along under?

WANNA MAKE A CHANGE?

Well, hold up, George – no need to be hasty, now. Brother Jerome just might see some light at the end of the Biden tunnel that isn’t a train.

It won’t save, Biden.

— Jason Coursey (@JasonCoursey) December 13, 2023

Huh.

In Sept, 5 Fed members expected three cuts or more

In Dec, 11 Fed members expect three cuts or more.

— zerohedge (@zerohedge) December 13, 2023

Wonder what happened.

The fact that the question is asked shows that Powell is at fault and being swayed politically 🙈

— James “The King” Capy (@Luximoto) December 13, 2023

It really is odd how it’s suddenly “signal a reduction” time.

Fed Holds Rates Steady and Sees Cuts Next Year
Officials don’t rule out further hikes while penciling in three rate cuts in 2024

The Federal Reserve held interest rates steady and signaled inflation had improved more rapidly than anticipated, opening the door to rate cuts next year.

Most officials penciled in three interest rate cuts for 2024 in projections released after their two-day meeting on Wednesday.

…But another hike seems remote because inflation has declined much faster than officials anticipated this year. In their latest projections, they expected core prices, which exclude volatile food and energy items, to rise 3.2% this quarter from a year ago, down from their September projection of 3.7%. They see core inflation of 2.4% at the end of next year, down from their September expectation of 2.6%.

…Most Fed officials have been reluctant to publicly discuss when they might begin cutting rates, but investors in interest-rate futures markets expect them to start next spring and to lower the fed-funds rate by at least 1 percentage point by the end of 2024.

In September, officials had projected one more increase this year followed by two cuts next year, taking the fed-funds rate to around 5.1%. On Wednesday, officials projected they would lower rates to around 4.6% by the end of 2024, the equivalent of three quarter-point reductions.

Some of the Fed governors aren’t so hep on the unemployment picture, though. That’s been a big sticking point for Powell and a good portion of what’s kept him raising rates – that ration of workers to jobs. Well, these projections should be sobering.

Just about all the clowns see increasing unemployment next year. A few see over a million job losses. pic.twitter.com/bAHA8wpRU7

— Frog Capital (@FrogNews) December 13, 2023

Low interest rates won’t mean bupkiss if you’re unemployed. Like another 1100 Hasbro employees are going to be…right before Christmas? TOY and GAME people?

Toy maker Hasbro said Monday it is cutting about 1,100 jobs, or 20% of its workforce, as the malaise in the toy business extends through another holiday shopping season.

The nearly century-old Rhode Island-based company behind Monopoly, Play-Doh and My Little Pony toys disclosed the layoffs in a memo to employees published in a regulatory filing. The Wall Street Journal first reported the news.

The company said that the reductions are on top of 800 job cuts that have been taken so far in 2023 as part of moves announced last year to save up to $300 million annually by 2025. As of year-end 2022, the company said it had 6,490 employees.

There are plenty of signs that do not bode well, and more than one analyst listened to Powell’s presser with a good deal of skepticism…

Whoever hired that guy should never work in politics again.

— Burt Macklin (@BurtMaclin_FBI) December 13, 2023

…wondering if the folks in charge of “the money” really have a clue…

Interest expense is rising exponentially. I think that counts as worrisome.

— Rudolph Troha 🇺🇲🏳️‍🌈 (@RudolphTroha) December 13, 2023

…besides the obvious questions about these miraculous rate cuts.

They have seen something in the data and they not being 100% truthful with the public. This is repeat of 2018 Powell Flip-Flop!

— Brannigan Barrett (@Trader_Bran) December 13, 2023

Election year has nothing to do with it, I’m sure. Neither do Biden’s miserable numbers right now.

This is exactly the issue. Powell is promising something he cannot deliver unless there is a major economic collapse.

The only way we get three rate cuts is if the economy falls off a cliff. Like a major cliff.

I have never seen the Fed be so political. https://t.co/vsJRhQtCGS

— You can’t make this Crap up! (@cantpretendtoo) December 13, 2023

Oy.

But Dow 37K today.

Party on.