The “bad news” interest rate cuts were injected into the economy today decreasing the federal fund rate to 4%-4.25%.
Why would an interest rate cut be bad for the economy and soon the stock market?
-A 25 basis point cut won’t impact Borrowing much, but it does signal that the Fed is nervous about the economy, effectively promoting a rate cut.
-Inflation is still increasing. The decision to cut the federal fund rate as inflation is rising is an oddball move that will have cascading impacts to our economic balance.
-We are at an inflection point that we are at a crossroads where the bad economy is about to catch up to the stock market.
-The AI bubble can’t will burst, and China pushing back on adopting NVDIA’s chips are the turning point.
-Most important! The unemployment rate is gradually climbing, most likely a result of AI stealing customer support and repetitive task jobs. Blue collar jobs are now the stable labour market.
The end of the 3 rd quarter is when the economy is going to catch up to the artificially inflated stock market.
Let your Love Flow – Bellamy Brothers
NoFluffBizRants 
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