Well, howdy there, Internet people, it's Bell again.

So today, we're going to talk about the Fed adjusting to Trump's economy.

I know there's a lot going on right now, but we're trying to cover the things that aren't being adequately covered.

The Federal Reserve met, and it lowered interest rates by a quarter

point, and indicated more might be on the way. Federal Reserve Chair Powell explained the cut

as a risk management cut. He pointed to a weakening job market and higher inflation. For the labor market, he said, quote,

the labor market is softening, and we don't need it to soften anymore.

When talking about the inflationary pressures, he said, quote,

we do expect them to continue to build over the course of the rest of the year and into next year.

A clear summary of the economic state of the country came from Powell.

Quote, job gains have slowed and downside risk to employment have risen. At the same time,

inflation has risen recently and remains somewhat elevated. In support of

our goals, and in light of the shift in the balance of risks, today the Federal Open Market

Committee decided to lower our policy interest rate by a quarter percentage point. We also

decided to continue to reduce our securities holdings.

He then went on to talk about the slowing economic activity, but he used the term moderate.

Then said, quote, GDP rose at a pace of around 1.5% in the first half of the year, down from 2.5% last year.

So, the short version is that the stage is still set for potential stagflation.

The long version is that video from a while back saying the Fed will cut rates because Trump broke the

job market and that will become the bigger risk. That's what happened. Beyond that, consumer

spending is down. The housing market is weak. Outside of the Federal Reserve meeting,

there's some other data worth going over.

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