/biz/ - Business & Finance

>>52731335
>Why would you bother expanding when you have no consumers because they have no money?
Not having money never stopped Americans from spending.
Eventually that will blow up, but like I mentioned with 2005, that's hard to time.

Also, capex isn't always about producing more.
If I invest in machinery/robots/AI that makes my workers more productive, then do some "restructuring", profits can still go up. Or I could displace a competitor and increase market share.
The main factor that determines this is the RRR for capital projects. Risk-free rate changes are much more significant factor than consumer demand.
I agree we are probably going to see decreased Capex, I just don't think the PSAVERT has much to do with it.
>I don't know in what world where .4% monthly inflation in a year approaches 2%.
Never said we were at the target, but the point is it's started to downtrend.
Major driver of CPI is energy prices. Ukraine spiked these, and you can't start drilling/adjust grids overnight.
Also, it takes time for market to adjust to Fed.
+0.4% months weren't uncommon even when inflation was low, whereas the +1% ones absolutely were.
If we see m-o-m CPI over 1% again, then yeah. JPOW will absolutely send us to the shadow-realm with rate hikes.