Philoinvestor

Philoinvestor

Share this post

Philoinvestor
Philoinvestor
Why the Fed cut by 50
Copy link
Facebook
Email
Notes
More

Why the Fed cut by 50

What it means and the way forward..

Sep 20, 2024
∙ Paid
6

Share this post

Philoinvestor
Philoinvestor
Why the Fed cut by 50
Copy link
Facebook
Email
Notes
More
3
Share

I saw this tweet last night, and I realised something…

Tweet.

I realised that people don’t have much understanding or even context for how central banks think… 👀 👀

Listen to this 2 minute Philo’s Thoughts on why the Fed is threading the needle, from May 2024. I explain the Fed’s predicament and the surgical balancing act it needs to execute to keep things together.

The Fed: Threading the Needle

The Fed: Threading the Needle

Philoinvestor
·
May 4, 2024
Read full story

Fed Context

You remember how in the Covid era the Fed was late in hiking rates with the overall excuse of “transitory” inflation. Then they quickly threw in the towel and started hiking — with the objective of anchoring inflation expectations and not letting them get out of hand.. (Check Appendix Below1)

Well, a few quarters later and, together with the help of those crunching the numbers (LOL!), they managed to beat inflation. 😅

Ok they didn’t actually beat it, August Y/Y CPI All Items was at 3.2%, while the CPI LESS Food and Energy stood at 2.5%, down 0.4% from the last reading.

—> The stock markets rejoiced, yields tanked and the Fed got its chance to cut!

In this piece we will see where the Fed’s unofficial mandate of solving for real interest rates commenced, why they are doing it, and where/how this whole tactic can unravel in our faces!

Why did the Fed cut by 50?

This post is for paid subscribers

Already a paid subscriber? Sign in
© 2025 Philoinvestor
Privacy ∙ Terms ∙ Collection notice
Start writingGet the app
Substack is the home for great culture

Share

Copy link
Facebook
Email
Notes
More