Reply to President Trump is calling for lower Fed rates

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]The tariffs would ordinarily be inflationary.  Right now, they are not inflationary because consumer spending is stalled, waiting.  Just like every other sector of the economy.  All waiting.  Waiting for Trump to grow up, for Congress to put their foot down.  For WWII.  Anything but this.

However, businesses and people cannot wait forever.  Pretty soon, things will start melting down.  Unless something changes.[/quote]
If we keep going in this direction, I predict it will all come to a screeching crash by September when the supply chain cease to exist. Right now companies are using their stock pile that they over ordered in advance of this nightmare scenario, but that’s gonna run out. Shipping imports are already down. [/quote]

September?  What business gets 9 months of inventory?  Car companies get antsy with 90 days and would prefer 30 days.  Holding stock is an unnecessary expense.[/quote]
I've listened to multiple interviews with business owners who pre-ordered as much inventory as they could after Trump was elected, then especially in March as they saw the tariffs were going to be worse than they expected. Some said they have 3-4 months stocked up as it was all they could afford. Others were able to get about a year's worth of inventory. They said storage fees were far less than the tariffs, and it also kept them from shutting down their business.

Those who didn't stock up or couldn't afford to stock much, will start running out this summer and fall. Obviously autos are a different category due to the space for storage and longer manufacturing time, than say toys or glass jars.

Unless tariffs are 180'd, we're going to be seeing empty shelves more than increased prices.[/quote]

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