Money Mind

General Category => The Common Lounge => Topic started by: Tuna Seng on Sep 21, 2024, 01:25 AM

Title: Cut rates does not cause recession same as inverted yield =\= recessi
Post by: Tuna Seng on Sep 21, 2024, 01:25 AM
Said earlier..
FED cut rates does not cause recession as stupid ppl spread this misinformation
They have this wrong info is bec last time recession always come when FED cuts rate. So they assume.
 recession was already underway the FED cuts rate in response to save the economy
After cutting the effect is not immediate it takes 6-12m for economy to benefit from the cut
That's why recession happens first before it recovers
Same as inverted bond yield curve is not a definitive prediction of recession.
It can be a warning but not a certain, so what when recession  happens in the past it always happens with a inverted bond yield curve. They have no direct link.
Inverted yield curve happens when market is overheated FED needs to do something to cool down the market
It does not necessary mean inverted yield curve 100% = recession.it depends on other factors mainly the unemployment rate /gdp growth etc
Too many smart alecs jump to conclusion spreading misinformation
Title: Re: Cut rates does not cause recession same as inverted yield =\= recessi
Post by: Imboredasfuck on Sep 21, 2024, 01:40 AM
So recession will come in a few mths?
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