Fed NEEDS to save tech
With layoff season in full force, why the flying fucx would Jay Powell not slash those sky high interest rates to zero. Is he waiting for a startup apocalypse before deciding to act? 25,000 tech bros have lost work since the start of the year alone with countless more layoffs expected over the next few months. Venture capital has completely dried up and start ups, which are the engine of innovation in America can't raise a dollar. We need ZIRP to reinflate assets and not just the Magnificent Seven. Is Powell Brain dead or is he holding the rates high on purpose so he can get a higher unemployment? Lastly, those of us working in non-Mag7 are seeing our RSU's go up in smoke. Fed gotta cut.. got to..
Boo hoo tech workers get paid $150k instead of $200k or some need to get unemployment. Bruh no sympathy. The fed has a dual mandate price stability and employment. 100k laid off tech workers who can refinance their home equity piggyback isn’t gonna move the needle at all. Zirp ain’t walking through that door. If you want zirp. Become a debt/defect hawk and explain how 5% interest payments on t bills will bankrupt the nation unless governments cuts spending (they won’t).
It’ll come. We just need that recession to start. It’s coming. A kindergartner could look at this pic and guess what happens next https://fred.stlouisfed.org/series/UNRATE/
Gonna cause more inflation and housing prices to keep shooting up. If you want tech bros saved, that’s more of a congressional issue to fix some of the labor practices in the US. The Fed hasn’t and will never make decisions exclusively on job market of just one sector
What is Mag 7?
Tech bros have a lot of immigrants and don’t vote. If boomers had started seeing issues in their life we would have seen them flooding the streets. This is the country of the boomers, for the boomers, by the boomers.
Boomers work in tech too. Reality is economy needed to cool and wage growth needed to halt. Rates were raised the expectation of causing pain and tech is the one responding the hardest.
Traditionally construction gets hit first. This was just different mostly because construction was behind because covid.. Recession is coming. We just need to be prepared.
Repeat after me: you are not at the center of the universe.
I watched so many videos and read books usually the fed cut rates if economy goes to recession. They do not care about you , but the economy in general. And only high pay jobs are impacted more till now they want you take low salary and deliver more .
Every job has a multiplier. A job at PayPal supports many other jobs in the local economy. High paying jobs have a higher blast radius.
Sounds like 2 birds one stone. No better way to cool the economy than hit high paying jobs.
Nobody is or should come to save the jobs of useless employees at useless consulting companies like PwC. You leeches need to learn the same lessons in fiscal management and redundancy elimination you charge so much to teach others.
This is the literal intention of the rate hikes.