Jeeper79 said:
Logos Stick said:
Jeeper79 said:
Logos Stick said:
BoydCrowder13 said:
Between tariffs and cutting rates, I can't think of a better way to revive inflation.
If tariffs are as punitive as many believe they will be, how would reducing rates have any significant impact as far as inflation? At best it will probably be a wash.
Even the pro tariff crowd has been saying their short term inflation, long term deflation.
Which supports my point.
It means that even if that's right (which I'm not sure it is), you're better off waiting for inflation to cool down. Doing it now, right before inflation goes up, isn't the right time.
It's not going to matter, imo. If the price of a new vehicle rises 10% because of tariffs - as an example - reducing borrowing costs 50%, from 5% to 2.5%, ain't gonna get people out on the lots to an extent where manufacturers are bumping the price even more. For a $50k vehicle, that's an additional $5k for the price. On a 5 year loan, that will only save $3800 at 2.5%. The monthly payment for a 5% auto loan on $50k is $946. The monthly payment for a 2.5% loan on $55k is $975.
These are going to be waterfall increases, not gradual.