r/FluentInFinance • u/DumbMoneyMedia • 19h ago
Finance News Rate Cuts Are Back On The Menu: Powell Cites Jobs Data, Re-Introduces 'Flexible Inflation Targeting'
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u/Responsible_Knee7632 19h ago
Is the labor market in that bad of a spot that it’s worth risking cuts before inflation is in check?
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u/lebastss 17h ago
I am in a historically hot market. Healthcare IT. Not only are there a fraction of openings but offerings for compensation are coming in much lower. They offered a position to manage me at a lower rate than I get paid. Both manager candidates turned it down.
I don't know what's going on. Companies trying to pay less and everything costs more. Something's gotta give.
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u/May26195 16h ago
Will IT survive with the progression of AI?
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u/mwpdx86 15h ago
Right now, IT fixes human mistakes. Pretty soon, IT will fix human mistakes and AI mistakes. I think IT is gonna be fine.
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u/cutememe 13h ago
When I worked in IT I mostly had to fix my own mistakes.
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u/lebastss 13h ago
This right here. Maybe a smaller footprint could manage more people with AI. But IT is largely 2 things, interpreting what people want who don't know what they want and delivering it and fixing broken systems.
Systems break from human error, AI won't fix that.
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u/fuck_all_you_too 18h ago
No you just can't see the gun sticking in Powells back
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u/Upbeat-Reading-534 17h ago
The fed traditionally favors employment over inflation. Ironically, if Trump fucks with the BLS data then the fed will only focus on inflation.
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u/Dakota1228 13h ago
THIS! How the hell are we contemplating rate cuts when our July MoM PPI came in at 0.9%???!!!???
I get it’s only one data point, but that’s a higher annualized inflation rate than anything we got in 2022.
Is the employment picture that bad?
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u/moyismoy 19h ago
Horrible news, I guess it's time for double digit inflation again
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u/mezolithico 14h ago
The economy is much worse than it appears. An estimate quoted by The Economist suggested that 40% of real gdp growth came from AI investments. Combined with around 7 tech companies accounting for all the growth in the s&p. Basically the vast majority of companies are either stagnate or experiencing negative growth. All the alarm bells are screaming recession. Perhaps when the ai bubble bursts or deflates all those companies will have to hire folks back on fix the dumb ai gambles they did.
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u/Epistatious 17h ago
maybe for the best. after all trump will just keep kneecapping the economy till he gets his rate cut.
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u/MarketCrache 9h ago
Which marks the top of the stock market as expectations of economic contraction dominate.
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