>>60502107
Why does not cutting now delay a recesion? wouldn't it be the opposite? companies are refinancing at higher interest rates, so this increases amount of bankruptcies and thus of a recession, which then ends in panic cuttings, which is what has happened since the 2000 if you chart FFR vs SP500.
So I don't know why he is not cutting already. I only have 2 theories:
1) He is genuinely worried about inflation. He thinks that if he cuts, inflation will go up
2) He wants a controlled demolition, he is just waiting for shit to hit the fan to have an excuse to lower rates. This way, he will be doing "what's needed" and he will not look bad vs cutting rates and then seeing inflation go up again and have to hike even more (second wave inflation thing). But if there is a hard landing, wouldn't he look bad anyway and would make Trump's "mr too late" take valid?
