Why The Fed Is Forced To Cut Rates

The Markets are now convinced of a rate cut. But is the fed really in a position of being forced to do it.

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[Musicmom]

You are so trusting of them. Income inequality has never been worse. Why do you assume that they care about the mandates?

[bobl]

THE FED IS NOT FORCED TO DO ANYTHING - THEY DO WHAT THEY WANT, WHEN THEY WANT TO

[PatOnestone]

Thanks! It's crazy to me that you are the only one on YouTube talking about this.

[ltdlawnservice]

The primary dealers are the share holders of the federal reserve. The private banks clearly act in accordance with the federal reserve.
The treasury would only sell treasuries if it knew it had a buyer.
Rates have already dropped .5 since July.

[encompassvideo]

You are a thinking man. Very impressive.

[Shark-Tacos]

The fed seems to be reactionary to whatever the gov fiscal policy. It’s all so tiresome. ♾️

[stevenschuck]

I don't think they'll cut the rates... Just saying. they are going to try to protect the dollar from falling into the abyss of worthlessness.

[xycan]

I've heard you talk about this a few times but this is the first time it's really sunk in clearly for me. Perhaps it's just me or perhaps you're getting better and better at explaining it! Probably both :)

[OliverDesigns]

If the general public believes the fed needs to lower rates to ease the burden of home buying but if they do these will then be an isurgance of home buying that will in turn drive more inflation to housing affordability.

A rate cut right now is merely a token of hope that will assist in maintaining the inflationary scenario thus driving the reality of our new norm.

If they were trying to decrease inflation they could simply raise rates and force a depression of home buying to ultimately deplete everyones high standard of living. IMO.

Have the memes on your channel not been listening?

Keep up the good work UE! Cant wait to see how the masses react to the feds next move!

[nneisler]

They have to finally acknowledge that the economy isn't doing well.

[Billabong]

The FED dropping rates let's the government and businesses sell more bonds to the wealthy chasing yield. The money from bond sales creates spending/jobs. Low inflation with full employment, incomes paying off mortgages, money supply grows while inflation falls but asset prices increase.

[raymondblack]

Thanks for your content. I need to dig into this much deeper.

[deeeeeeps]

You can't tell me the government spending and federal reserve giving them monoply money to spend with isn't a connection. Do you really think after 2 years of hiking it just so happens to be 2 months before an election they have to cut? If what u r saying is true they could just hold rates at 2% and not change them every 4 The things u said in this video are exremely foolish and will probably be the last time I watch a video of yours.

[Billabong]

FED coin = gold machine. One more business cycle to imbed a FED coin and restructure the banks.

[bingus]

If the federal reserve doesnt cut interest rates to a similiar level to 2019, i feel like there is going to be price discovery on assets since everbody behaves like we are going back to 2 percent interest rates

[orenalbertmeisel]

I need to look more into this "credible threat theory"

[billyd.]

The problem is not inflation it’s deflation! Deflation of the dollar! That’s why Janet Yellson got it wrong when she said inflation was transitory because prices didn’t go down they remained way above what was normal. In truth they still are high and lower interest rates won’t matter until wages rise to this new level probably about 20%! I guess I’m looking at housing and auto and food that are double what they were 4 years ago. My way of thinking about it is not made complicated by government bureaucrats lies and deficiencies it’s on actual affordability! I like your passion Simon and your right the stock market reacts to suggestions from the fed but the consumer is the market that has the final say!

[brushcrawler]

We know how religiously mandates are followed 😂

[TruckerBod]

Federal reserve also looks at the 2yr bond and it is currently at 3.556 way below the fed funds rate which is at 5.00 to 5.25 the Bond market is anticipating a lot of rate cuts in the future this is why everyone EXPECTS a cut.

[planeprepper]

Did you get finally get the headliner replaced in the Camry?