/biz/ - Business & Finance

The fed wants more companies behaving like FedEx, it's through this preparatory downsizing and layoffs that they will reduce core CPI.
companies up until now hadn't been doing this because they were ultimately expecting the fed to relent, and after all, with such a tight hiring environment why would they layoff staff.
it's this cross economy capitulation that would A: actually crash equity markets to a long term bottom.
B: ironically give the fed permission to pivot at least to a flat rate, likely elevated compared to what came before, but lower than what they are saying.

the result would be a slow recovery, or else inflation would simply return as it did through the 1970s, indeed structural issues with energy markets (ie geopolitical/ green energy transition) may make that kind of stagflation inneviatable, IMO secular bear is a good bet for the 2020s.

>>51126978
man dalle is not great with Jerome powell ~ stablediffusion seems to get it a bit better

https://lexica.art/?q=jerome+powell