Economy GOP back to Inflation worries. "Hyperinflation" (Update: 2022 Inflation Highest in 40 Years)

[Mr Holmes]

That article/survey is misleading. The actual statement:

Only 44% of U.S. adults would pay an emergency expense of $1,000 or more from their savings, as of December 2023 polling. 35% would borrow money, including 21% who would finance with a credit card and pay it off over time, 10% who would borrow from family or friends and 4% who would take out a personal loan.​

- Bankrate​

just says that 44% of Americans would pay it from their savings.

I think the actual question on credit cards is important and not really given in that particular article. Here a different one - https://finance.yahoo.com/news/bankrate-2023-annual-emergency-savings-080035219.html

25 percent of people say they would use a credit card and pay it off over time,

I'm a cc points guy so I would pay with a card and then pay the card off immediately, but I consider that from my savings.

 

[jimjamjammer]

I think the actual question on credit cards is important and not really given in that particular article. Here a different one - https://finance.yahoo.com/news/bankrate-2023-annual-emergency-savings-080035219.html



I'm a cc points guy so I would pay with a card and then pay the card off immediately, but I consider that from my savings.

With US household debt being at all time highs, I don't think many people are paying it off right away unfortunately.

 

[RoastBeast]

How many stories of lottery winners have you heard where they’re broke again in a few years

Yep because poor impulsive people play the lottery more than anyone else.

 

[cottagecheesefan]

GDP forecast was quite off. And the talking heads on MSNBC say people complaining about the economy are wrong because of numbers like the GDP.

How do we have a budget of over 7 trillion, and barely growing? We are adding a trillion to our debt every 100 days right? Where is it all going?

 

[White Whale]

US economic growth slowed to 1.6% in first three months

The US economy is finally showing signs of cooling as growth fell to 1.6 percent in the first three months of the year.

www.dailymail.co.uk

Shock slowdown in US economic growth in first three months of 2024 sparks fears of downturn and sends stocks plummeting

The lower-than-expected data, released by the Commerce Department Bureau of Economic Analysis, sent stocks downwards Thursday morning.

The Dow Jones Industrial Average tumbled 1.7 percent or 650 points while the S&P 500 lost 1.4 percent.

Despite the slight downturn, Americans continue to spend heavily on healthcare, insurance and other services, the Commerce Department said.

The lower-than-expected data, released by the Commerce Department Bureau of Economic Analysis, sent stocks downwards Thursday morning.

The Dow Jones Industrial Average tumbled 1.7 percent or 650 points while the S&P 500 lost 1.4 percent.

Despite the slight downturn, Americans continue to spend heavily on healthcare, insurance and other services, the Commerce Department said.

However, there was a dip in spending on goods such as cars and gasoline.

It comes amidst speculation over when the Federal Reserve will start to cut interest rates which are currently at their highest level in 23 years.

The Fed's aggressive tightening cycle was intended to stamp out soaring inflation which peaked at an annual rate of 9.1 percent in January 2022.

A slowing of the economy paves the way for officials to slash rates however a recent acceleration in inflation has put an imminent cut in jeopardy.

The Fed has a clear target of bringing inflation into its target range of 2 percent yet in March, the annual rate ticked upwards slightly to 3.5 percent.

Only 6.4 percent of investors currently expect a cut at the Fed's next meeting on May 1, according to the CME FedWatch Tool.

The majority - over 57 percent - foresee a cut coming by September at the latest.

The International Monetary Fund last week upgraded its forecast for 2024 U.S. growth to 2.7 percent from the 2.1 percent projected in January, citing stronger-than-expected employment and consumer spending.

Economic growth has slowed so I guess Bidenomics is working.

 

[TeTe]

If GDP drop below 1.6 for Q2, I wouldnt be surprised in the Fed cuts before Sept.

 

[Rob Battisti]

If GDP drop below 1.6 for Q2, I wouldnt be surprised in the Fed cuts before Sept.

The money printer is dying to BRRRRRR

 

[aerius]

If GDP drop below 1.6 for Q2, I wouldnt be surprised in the Fed cuts before Sept.

That's not how it works. Contrary to popular belief, the Fed does NOT set rates. The Fed Funds rate tracks the 3 month T-bill rate, and the latter isn't coming down unless the stock market shits the bed and there's a flight to safety in Treasuries or we somehow get inflation under control. The former is possible, the latter ain't happening for at least a year based on the PPI which leads the CPI.

 

[TeTe]

That's not how it works. Contrary to popular belief, the Fed does NOT set rates. The Fed Funds rate tracks the 3 month T-bill rate, and the latter isn't coming down unless the stock market shits the bed and there's a flight to safety in Treasuries or we somehow get inflation under control. The former is possible, the latter ain't happening for at least a year based on the PPI which leads the CPI.

I think you left out unemployment as a reason too.

Either way there's a short window for risk-on assets I believe this year.. rates will get cut if the economy starts shitting the bed overall. When the rate cuts are announced, it'll be a boon for a bit. But shortly after (within 6-12 months), yield curve will start un-inverting and the great sell off will begin Charlie Brown.

I just say that because I'm a risk asset kind of guy, so that's what's relevant to me.

 

[cottagecheesefan]

I think you left out unemployment as a reason too.

Either way there's a short window for risk-on assets I believe this year.. rates will get cut if the economy starts shitting the bed overall. When the rate cuts are announced, it'll be a boon for a bit. But shortly after (within 6-12 months), yield curve will start un-inverting and the great sell off will begin Charlie Brown.

I just say that because I'm a risk asset kind of guy, so that's what's relevant to me.

The clip I posted about gdp was short, the longer version, Rick says the jobless claims for 5 of the last 7 months has been the same. Basically implying the admin is lying in these reports lol. It is at the very start.