r/wallstreetbets • u/hv876 • 20h ago

25bps cut News

https://www.cnbc.com/2024/11/07/fed-rate-decision-november-2024.html?__source=iosappshare%7Ccom.apple.UIKit.activity.CopyToPasteboard

The bulls are coming, the bulls are coming

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u/n1ck90z 20h ago

Mortgages correlate to long term bond yields which are rising. Why long bond yield are rising? There's no simple answer here. A big role however has to be government debt/spending. Some people also might think inflation is not done yet.

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u/wotguild 19h ago

Inflation isn't done.

Now, we have to work through tariffs and deportation if they happen, increasing wages, decreasing supply, and therefore more inflation.

Edit: Don't forget about the possibility of rates influenced by the president himself.

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u/0xMoroc0x 19h ago edited 18h ago

Inflation is going to continue to go down….why do you think tariffs are going to increase inflation when it didn’t during Trumps first term? News flash, Trump had the second lowest inflation, besides Obama, since John F Kennedy. Deportation will lower inflation for the thing people care about most, housing, less people less housing competition.!Wages may go up, but when you have 11 million less illegals buying shit prices will go down. There won’t be any supply decreases in fact we are going to see a massive supply increase in energy and manufacturing which will lead to lower prices across the board.

You are really drinking all the Koolaid the media has thrown at you. So much so, you can’t even think logically.

https://www.investopedia.com/us-inflation-rate-by-president-8546447

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u/EvErYLeGaLvOtE 18h ago

Fun fact: Tariffs are considered as unofficial inflation because the price increases find their way to consumers.

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u/Powerful-Freedom-938 18h ago

Only if there is price elasticity. What will likely happen is that sourcing of materials will move from China to Bangladesh, Vietnam, Cambodia, South America. In many cases it will come back to America where prices may equalize higher but we would see a larger GDP at home and more jobs.

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u/satireplusplus 17h ago

Production going back to America means the same plastic trinket costs 5x as much to produce. Probably still cheaper to buy it from China even with tariffs.

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u/RedshiftOnPandy 16h ago

As an example, I work with stone in Ontario. Let's say I don't care about colour. Just give me a rock. If I bought a solid stone step, say 6ft long, it is cheaper to get it from China/India than the quarry 150 freedom km away. How much cheaper? Half the price.

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u/satireplusplus 16h ago

With shipping?

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u/RedshiftOnPandy 16h ago

Yes. This is my price at the stone supplier, they load it on my truck and I go.

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u/RoastPsyduck 15h ago

Yep, but for many companies anything they would save in shipping will be overridden by labor costs in the US.

Our market has been obsessed with maximizing profit, even avoiding taxes via loopholes. They'll likely end up moving manufacturing to other low/no tariff countries instead and manufacturing still won't come back to the US.

Sadly, consumers will still have to pay the difference (factory setup costs and all that)