Economics

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Annual US inflation falls to 3-year low, clearing the way for the Fed to begin cutting rates (apnews.com)

submitted 3 months ago by MicroWave to c/economics

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Year-over-year inflation reached its lowest level in more than three years in July, the latest sign that the worst price spike in four decades is fading and setting up the Federal Reserve for an interest rate cut in September.

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[–] [email protected] 3 points 3 months ago (1 children)

The economy is doing ok though, inflation is still up. Wallstreet wants lower rates, but listening to them got us extended 0% that ultimately was bad for the economy.

Interest rates going up and forcing over leveraged companies into bankruptcy is also good for the economy.

[–] yes_this_time 1 points 3 months ago

Maybe tough to get a concensus on where the economy is going to be, a bit of reading tea leaves.

Regardless, agreed on extended 0% being problematic. Out of all the factors dragging us down:

interest rate history, pandemic, demographic shifts, climate change, global instability...

It could be interest rates that are having the largest impact today. Considering it caused such a large wealth transfer, equity inflation, and a drag on productivity.