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EU's Inflation is higher than our, yet they lowered rates again..for the 7th time

Posted on 4/21/25 at 8:02 pm
Posted by BCreed1
Alabama
Member since Jan 2024
4938 posts
Posted on 4/21/25 at 8:02 pm
European Central Bank cut interest rates Thursday for the seventh time and now 2.25%. The European Union's inflation rate also decreased to 2.5%. The inflation rate in the U.S. for March 2025 is 2.4%.


So explain why Powell is refusing to cut rates?
This post was edited on 4/21/25 at 8:18 pm
Posted by jbdawgs03
Athens
Member since Oct 2017
11308 posts
Posted on 4/21/25 at 8:03 pm to
OMB!
Posted by SDVTiger
Cabo San Lucas
Member since Nov 2011
86679 posts
Posted on 4/21/25 at 8:03 pm to
Its insane Too Late Jerome is gonna cause the recession

Like he did transitory inflation
Posted by KirbySmartass
Member since Jul 2020
2470 posts
Posted on 4/21/25 at 8:05 pm to
quote:

Powell is refusing to cut rates?


But he swears the Fed isn’t political, wink wink.
Posted by KCT
Psalm 23:5
Member since Feb 2010
41761 posts
Posted on 4/21/25 at 8:06 pm to
quote:

So explain why Powell is refusing to cut rates?


He's part of the Deep State. He knows that his #1 priority is to do everything he can to ensure that Trump fails.
Posted by oklahogjr
Gold Membership
Member since Jan 2010
39339 posts
Posted on 4/21/25 at 8:06 pm to
Rates seem about right honestly. Given the instability and unpredictability of the situation taking no action seems prudent and leaves more gas in the tank should things go bad and rates need to be lowered
Posted by llfshoals
Member since Nov 2010
19219 posts
Posted on 4/21/25 at 8:07 pm to
quote:

So explain why Powell is refusing to cut rates?
Two reasons.

1 - Because he probably actually thinks it is inflationary. It can be, but isn’t necessarily always so.

2 - The media is driving the narrative that it will absolutely be inflationary. This gives him the political cover to do absolutely nothing. Which is the safe course of action.

Frankly most political appointees do their absolute best to do absolutely nothing.
Posted by Tigers0918
Member since Feb 2020
1438 posts
Posted on 4/21/25 at 8:11 pm to
if Trump wasn't putting tariffs on every country, rates would have dropped.

Please stop trying to pretend tariffs don't make it different. The market was at all time highs and inflation was down, then Trump decided to go all out on tariffs which cause prices to increase.

It would be stupid to drop the rate right as that is happening as it could cause even more inflation to compound on the inflation from tariffs.
Posted by BCreed1
Alabama
Member since Jan 2024
4938 posts
Posted on 4/21/25 at 8:12 pm to
quote:

Given the instability and unpredictability of the situation taking no action seems prudent and leaves more gas in the tank should things go bad and rates need to be lowered


The EU has lowered theirs for the 7th time. Are you actually go to say that we should remain higher than other nations?

Do you understand the damage from him not lowering happening right now?
Posted by BCreed1
Alabama
Member since Jan 2024
4938 posts
Posted on 4/21/25 at 8:22 pm to
quote:

if Trump wasn't putting tariffs on every country, rates would have dropped.



Tariffs do not decide rates. The FED does.

quote:

Please stop trying to pretend tariffs don't make it different. The market was at all time highs and inflation was down, then Trump decided to go all out on tariffs which cause prices to increase.


That's the dumbest take I have seen. The EU has tariffs on the US and HAS! WAY before Trump.

quote:

It would be stupid to drop the rate right as that is happening as it could cause even more inflation to compound on the inflation from tariffs.


Only if you believe a recession or depression is the goal and needed.

If interest rates stay elevated for an extended period, both consumer and business spending are likely to slow, which can dampen overall economic activity. Higher interest rates increase the cost of borrowing, reduce disposable income and therefore limit the growth in consumer spending. Government debt interest payments increase.


With other nations lowering their, it makes THEM more attractive. So where does money go? Think!
Posted by Tigers0918
Member since Feb 2020
1438 posts
Posted on 4/21/25 at 8:27 pm to
quote:

Only if you believe a recession or depression is the goal and needed.

If interest rates stay elevated for an extended period, both consumer and business spending are likely to slow, which can dampen overall economic activity. Higher interest rates increase the cost of borrowing, reduce disposable income and therefore limit the growth in consumer spending. Government debt interest payments increase.


This is exactly why tons of tariffs right now is a dumb idea with rates already a bit higher.

quote:

That's the dumbest take I have seen. The EU has tariffs on the US and HAS! WAY before Trump.


Yes, and as anyone will tell you, tariffs will cause inflation. It would not be inflation year after year, but it does cause prices to go up(which is the definition of inflation). Once they are raised, they likely stabilize and inflation then goes back to normal, but it would be expected that if tariffs stay, inflation would go up for a year or two before stabilizing again. To compound that with low interest rates could cause major issues and the FED is very cautious to make changes while there is so much uncertainty.
Posted by Burt Reynolds
Winnfield, LA
Member since Jul 2008
22796 posts
Posted on 4/21/25 at 8:27 pm to
quote:

EU's Inflation is higher than our, yet they lowered rates again..for the 7th timeby BCreed1European Central Bank cut interest rates Thursday for the seventh time and now 2.25%. The European Union's inflation rate also decreased to 2.5%. The inflation rate in the U.S. for March 2025 is 2.4%. So explain why Powell is refusing to cut rates?


Think you answered your own question kid.

Europe has higher inflation because they cut rates too much. Cutting the rates increases inflation for some cheap economic gain then we all pay the price
Posted by BCreed1
Alabama
Member since Jan 2024
4938 posts
Posted on 4/21/25 at 8:56 pm to
quote:

This is exactly why tons of tariffs right now is a dumb idea with rates already a bit higher.


o no. It's the Job of the Feds to do what's best for the economy. And you are failing to see facts.

Fact, The EU has a crap ton of tariffs on everybody yet their inflation is in line with ours!

See the issue with your logic?

quote:

Yes, and as anyone will tell you, tariffs will cause inflation. It would not be inflation year after year, but it does cause prices to go up(which is the definition of inflation).


Only part of the damn picture. Lowering taxes does what?


Powell is going to create a recession.

Posted by BCreed1
Alabama
Member since Jan 2024
4938 posts
Posted on 4/21/25 at 8:58 pm to
quote:

Europe has higher inflation because they cut rates too much. Cutting the rates increases inflation for some cheap economic gain then we all pay the price


Their inflation has fallen... and has even though they have lowered it 7 times.

Their inflation is literally .1% higher.

Posted by slackster
Houston
Member since Mar 2009
89208 posts
Posted on 4/21/25 at 8:59 pm to
Their headline inflation in the Euro area is lower than ours. It was 2.2% in March. Also, their unemployment is 6.2%.

Our headline is 2.4% and unemployment is 4.2%.



The ECB controls monetary policy for the Euro area, not necessarily the EU. Some EU members have their own central bank.
This post was edited on 4/21/25 at 9:07 pm
Posted by Aubie Spr96
lolwut?
Member since Dec 2009
43168 posts
Posted on 4/21/25 at 9:01 pm to
Jesus Christ. You stupid fricks realize that ‘zero percent interest rates’ lead to our out-of-control spending, nation ending debt, inflation, and the devalued dollar right?

It would be nice if Trump just had a plan that he could articulate. Too bad he doesn’t.
Posted by RohanGonzales
Member since Apr 2024
4404 posts
Posted on 4/21/25 at 9:05 pm to
quote:

It would be nice if Trump just had a plan that he could articulate. Too bad he doesn’t.


too bad you are too stupid to figure it out

Why is it important that the stupid understand what is going on?
Posted by DMAN1968
Member since Apr 2019
11721 posts
Posted on 4/21/25 at 9:07 pm to
quote:

It would be stupid to drop the rate right as that is happening as it could cause even more inflation

You mean like dropping the rates right before the election when inflation was well above target numbers?

Not political at all.
Posted by slackster
Houston
Member since Mar 2009
89208 posts
Posted on 4/21/25 at 9:09 pm to
quote:

You mean like dropping the rates right before the election when inflation was well above target numbers?

Not political at all.


How did that turn out? What was the political gain?

If they were trying to boost the economy for Dems dropping it with less than 2 months to go was futile.
Posted by IMSA_Fan
Member since Jul 2024
256 posts
Posted on 4/21/25 at 9:15 pm to
The EU’s economic isn’t growing - thus the reason for cutting rates
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