Fed Chair Powell: Holding interest rates too high for too long could jeopardize economic growth

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[joefortune]

Fed Chair Powell just testified before the House, and the stock prices plummeted. It's incredible how much influence one person can have over the entire economy. As the head of the Federal Reserve, Powell's words can send shockwaves through the market.

[fromthebirchwood]

The Fed's talk of interest rate cut leaves me pondering what stocks to buy now and when do I sell? I'm unsure how to properly allocate my money to achieve an optimal portfolio in this present economy, my goal is $3m for retirement.

[Ultrajamz]

Can only delay the crash with juiced up govt hiring for so long

[oltlvfm]

Imagine I make a pot of bean soup meant to feed 50 people, enriched with plenty of beans. Before serving, I scoop out a significant portion of the beans for myself and then add water to bring the soup back to its original level. This diluted soup now lacks the same nutritional value it initially had. This is a roundabout way of illustrating how the fiat monetary system operates today.

[Seanpfree]

The FED never moves in time, they're always late and their 1st impression is usually wrong.

[STACEYWORMACK]

They are trying to hold off, until after the election to raise rates. But, they may have to raise them in September, because the keep "adjusting" employment numbers.

[paperchase]

The us economy is a joke it’s horrible Americans struggling

[robf]

Too late to stop the on coming crash, you can't catch a falling brick by holding out a tissue.

[robjer]

Powell is being put in an impossible situation. If he cuts rates too soon, inflation will kick right back up but him keeping the rates as high as they are will crush the economy.

[williambudd]

its time for the fed to raise rates again because inflation has not come down as far as it should!!!

[tuber]

Geez why isn't he lowering rates back to zero then???

[abgzulkifli]

Inflation is not a financial things, its people businesses

[firepowerjohan]

This is riduculous, they should learn the lesson and use common sense. Waiting for something to break before lowering rates will mean they have to panic again and overdo it. This means they will have to lower rates too much too quickly and then in 1 or a few years they again have to panic and raise rates.

Would it be impossible to try finding a long term optimum interest rate to keep fairly stable at say at 3-4%
I bet if economy turns south, they will again lower rates to 1% if inflation is too low. and saying "this time is different" whether they call it QE or not QE or something entirely new.
They never learn...

it is better they lower rates 0.5% right now, and then if inflation rises just wait a few months, if keeps rising then raise again perhaps 0.25% at the time.

[abgzulkifli]

We know something good happens, they played wait, its cheating, this time no way

[abgzulkifli]

Half a million everyday, I still remember Wow

[navnathbhadale]

Please update me tomorrow indian share market update prediction

[dons]

That’s the idea Powell you should retire byby