What the Fed Rate Cut Means to You: Part V

Chair Powell answers reporters’ questions at the FOMC press conference on September 18, 2024. Photo courtesy of the Federal Reserve.

When you look at the abysmal track record of the Fed when it begins rate cuts of 50 basis points, it’s like boating in the fog. It doesn’t matter if you have the best navigational equipment. It’s not fun.

Having been stuck in thick fog myself, I can tell you that minutes feel like hours, and hours feel like days. Sometimes, when it lifts, you’re good to go like we were this summer off Castle Hill. Other times, like when I was a kid, we dropped anchor to wait it out, and when the fog lifted, we found out that we were in a harbor that wasn’t even ours.

Look at the record of the Fed when it’s in the fog, trying to find its way home.

So much is riding on the Fed’s imperfect decision makers getting it right, that things are bound to break down. Instead, America needs to keep it simple and use a gold standard—a set of rules Americans can rely on just like they know there’s 12-inches in a foot. It could only improve. Just take a look at the track record for the Fed “protecting” the dollar.

Let’s go back in the way back machine. The attraction of America was freedom. Freedom, not equity and inclusion. In speaking with a client yesterday, he told me how many opportunities he had at the beginning of his career in manufacturing. There was freedom, not equality.

You could pivot and manufacture what was in demand. His parents, he told me, emigrated to America because of one word: Freedom. Today, our manufacturing base is basically in China, all in the name of globalism, and the elite tell us we’re the problem.

Action Line: When you let the elite control your country, understand they’re navigating their own boat in the fog. We’re the ones left with the mess if they end up on the rocks. Invest accordingly. When you’re ready to talk, let’s talk, but only if you’re serious.

Read the entire series here.

Originally posted on Your Survival Guy.