I suppose it’s now possible that the rest of the world will be forced to cut rates while we stop cutting and potentially raise rates? Seems suboptimal - ThreadSky

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bencarlson007.bsky.social • 44 days ago

I suppose it’s now possible that the rest of the world will be forced to cut rates while we stop cutting and potentially raise rates?

Seems suboptimal

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michaels5555.bsky.social•43 days ago

We don't know. We aren't sure if we have raise rates to deal with the inflation caused by a trade war, or lower them to deal with mass unemployment. All I know is we need to detach ourselves from the US as much as possible. If that's possible...

paul-warner.bsky.social•43 days ago

Carry trade?

compound-bro.bsky.social•43 days ago

We approve of this economic idiocy…hoping it’s as good as a buying opportunity as 2018 was🤞.

jebnc.bsky.social•44 days ago

Strengthen dollar even more! Widening trade deficits. I hope having more mergers was worth it to all the finance CEOs backing Trump; Trump 2.0 will do to the S&P500 what he did to energy stocks

engineerhawk.bsky.social•44 days ago

If unemployment rises, I would think the Fed would address that as the highest priority.

jregueiro.bsky.social•43 days ago

Nope. Not how it works. Tariffs will drive up prices, which will cause inflation.

As an example, tomatoes from Mexico will cost 25% more, while American tomatoes will increase based on the extra demand. Good for farmers. Unless their migrant workers are deported.

jregueiro.bsky.social•43 days ago

For manufacturers, it’s the opposite story. Increased pricing means less sales. The unemployment will take a while to hit. Employers are not eager to layoff skilled workers unless there forced to.

The price increases will be immediate.

The best scenario is stagflation.

Not an economist.

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