Home Forums Hunting & Shooting Hunter's Campfire Does the fed really need to cut rates?

In my opinion, no.

As someone who relies on a healthy housing market to provide my livelihood? yes. As someone who's concerned about the health/future of the broader domestic economy? No.

The fed says it's because inflation is too low and they want it at 2%. I live in a booming housing market so we probably are fine regardless. Seems like housing market health is regional. But I can see how cutting rates might help areas that are not as healthy. As I age though I really want to see higher rates that help people who save their money. Unfortunately, I seem to be living in the past on this point. Not gonna happen.

No, I have cd's paying 3.6%. Its been a long time since I could get 3% on a CD. Plus I think inflation is showing up in some places besides housing. I don't think they should hike them either. Don't want to risk cooling things down. Things seem to be working ok where they are at for now. I'd like to see them reel in some of the deficit spending.

Bb

Housing market in my area is insulated by a historically low inventory so a slowdown or even mild recession will have very little to no effect on my income. At this point, a rate cut wouldn't have a positive effect for us. We're running at the maximum production output possible given the current state of available labor. We could easily double production if we had qualified labor available. Available labor is disappearing at a rate ten times faster than I estimated a year ago. It's by a large margin my biggest concern.

I don't have a problem with them lowering interest rates. It will make a spike on the stock market. With average risk options returning 12-15% , I don't see much reward in CDs at this time.

The builder/developers that I know down here are running at 100%, five 10-12 hour days and one 8 hour day most every week.
One of the bigger developers told me just last week if he could find 10% of more qualified workers he could cut the hours back.....maybe.

Me being somewhat greedy and owning a few rental properties in a crazy seller's market in my area, keep the rates the way they are