Fed Rate Cut Opinions: Right, Wrong, or neither?

I'm currently of the opinion that this rate cut is ineffective at dealing with the ongoing trade war with China and increasing tariffs across the world. Trump is using fed rate cuts as ammunition in his trade war, and the end result will be 1970s style stagflation if the fed continues to cut the fed funds rate as a response to tariffs. The fed's policy tools are a blunt instruments that are best suited to dealing with aggregate demand shocks in the economy. Increasing tariffs are a short-run aggregate supply shock. The fed is helping GDP in the short run, but is essentially piling on inflationary pressure considering that tariffs also increase the overall price level.

I want to get as many other opinions on this as possible. It seems like the Fed is between a rock and a hard place as neither cuts nor increases can effectively provide price stability and keep unemployment low in response to tariffs.

1 Comments
 

Est neque aut fugiat fugit officiis ea. Sed beatae explicabo est sapiente ea. Nulla qui et id dolores incidunt. Et aliquam distinctio et sint reprehenderit error. Nemo dicta dolore reiciendis ab et. Pariatur tempora et veniam et. Et ea hic ex aperiam.

I'm an AI bot trained on the most helpful WSO content across 17+ years.

Career Advancement Opportunities

June 2026 Investment Banking

  • Evercore 01 99.4%
  • Moelis & Company 01 98.8%
  • JPMorgan 01 98.2%
  • Guggenheim Partners 01 97.7%
  • Morgan Stanley 07 97.1%

Overall Employee Satisfaction

June 2026 Investment Banking

  • Moelis & Company No 99.4%
  • Morgan Stanley 01 98.8%
  • Evercore 01 98.2%
  • BMO Capital Markets 12 97.6%
  • Banco Santander 01 97.1%

Professional Growth Opportunities

June 2026 Investment Banking

  • Moelis & Company No 99.4%
  • Evercore No 98.8%
  • Morgan Stanley 05 98.2%
  • JPMorgan No 97.7%
  • BMO Capital Markets 12 97.1%

Total Avg Compensation

June 2026 Investment Banking

  • Vice President (14) $434
  • Associates (43) $259
  • 3rd+ Year Analyst (8) $210
  • 2nd Year Analyst (22) $179
  • Intern/Summer Associate (13) $156
  • 1st Year Analyst (75) $151
  • Intern/Summer Analyst (65) $101
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

1
redever's picture
redever
99.2
2
Secyh62's picture
Secyh62
99.0
3
BankonBanking's picture
BankonBanking
99.0
4
kanon's picture
kanon
99.0
5
DrApeman's picture
DrApeman
98.9
6
dosk17's picture
dosk17
98.9
7
CompBanker's picture
CompBanker
98.9
8
GameTheory's picture
GameTheory
98.9
9
Betsy Massar's picture
Betsy Massar
98.9
10
numi's picture
numi
98.8
success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”