TL;DR

The Fed cut growth forecasts and predicted higher unemployment, yet the market celebrated. This irrational exuberance mirrors past bubbles and reeks of impending disaster.

Story

The Federal Reserve, America’s central bank, just slashed its GDP growth predictions for 2025 to a measly 1.7%—down from a rosy 2.1%. Unemployment? Set to climb to 4.4%.

They’re blaming Trump’s trade wars. “Uncertainty,” they call it. As if global markets are a Magic 8-Ball and tariffs are the deciding factor. More like a casino where the house always wins, and we’re all betting with borrowed chips.

‣ GDP (Gross Domestic Product): The total value of everything a country produces. Like a national report card—higher GDP, better grades (supposedly).

But here’s the kicker: the stock market soared after this news. Makes sense, right? Like throwing a party when your doctor tells you you’re terminally ill. This isn’t rational behavior, it’s a market high on its own fumes—like the housing bubble in 2008 or the dot-com craze before that.

This “wait-and-see” approach from the Fed? It’s like watching a fire spread while debating the best brand of extinguisher. Meanwhile, ordinary people are watching their retirement savings evaporate. Remember Enron? How about Lehman Brothers? History doesn’t repeat itself, but it rhymes.

‣ Federal Reserve (The Fed): America’s central banking system. They control interest rates, which influence everything from mortgages to inflation.

The dollar’s falling, equities are stagnant, and inflation is still a problem. It’s stagflation all over again. Just like the 1970s, except this time the music isn’t as good. So, buckle up, buttercup. This roller coaster’s only going down.

Advice

Don’t follow the herd. When the market acts irrationally, it’s time to get very skeptical. History teaches that euphoria is often the prelude to a painful crash.

Source

https://www.reddit.com/r/stocks/comments/1jf4ud2/breaking_the_us_federal_reserve_cuts_gdp_growth/