Reply to Why is wall street ignoring/downplaying inflation?

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]The fed has to make a choice as to whether it emphasizes propping up the job market or tamping down inflation.  Usually, it is not a very conflicted choice because inflation usually means high growth and a decent job market.  The tariffs are putting us in a weird position where prices are going up but job growth is declining.

I think Wall Street knows that the fed is going to have to lower rates to protect the job market so there is less focus on inflation.[/quote]

Look the federal government is the nation's largest employer. The jobs report would not be this bad if it hadn't been for DOGE's chainsaw. But add the Fed workforce cuts to what is coming with AI, and it is going to look very bad very quickly. Unfortunately, cutting rates will not bring either of those jobs back. They are gone forever. But what it will do is increase inflation and stock prices.[/quote]

Job losses are deflationary tho [/quote]

The problem is the existing debt in the Treasury market. There is so much debt outstanding plus, still running 2 trillion/year deficits. Not to mention, Trump has alienated other countries, so they are not purchasing at the same rate. They are going to have to monetize the debt, which is highly inflationary.  [/quote]

I really don’t think you have the vaguest idea what things are inflationary vs deflationary. [/quote]

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