US economy shrinks more than expected in Q1

[Bronco 25,881]

24 minutes ago, banjosnap said:

Bombing iran & the subsequent oil situation may force the Fed's hand & they'll have to cut interest rates.

Or, you know, let America get what they voted for. 

If oil price rises happen due to market instability that won't make the Fed want to cut interest rates. Rather the opposite. 

Higher oil prices mean higher prices in virtually every sector. Would be suicide to cut interest rates.

[banjosnap 368]

1 hour ago, Bronco said:

If oil price rises happen due to market instability that won't make the Fed want to cut interest rates. Rather the opposite. 

Higher oil prices mean higher prices in virtually every sector. Would be suicide to cut interest rates.

They're expected to be left with no choice as of July.

[Bronco 25,881]

4 minutes ago, banjosnap said:

They're expected to be left with no choice as of July.

Oh absolutely they're forecasting for it on the expectation that the economy will start going into reverse due to the tarrif war - which is absolutely the right time to cut rates. 

But if an oil spike were too happen - which seems unlikely as Iran-Middle east tensions have hit a high watermark atm - then the likely knock on effects would see an inflation spike which would be grounds to raise or hold interest rates to try and halt the spike. 

Thanks to Trump, its like playing quantum chess at the moment.