The Fed is about to cut rates while everything else hits all-time highs. Stocks, homes, rents, bitcoin, gold, household wealth — all at records. Unemployment sits at 4.2%. Inflation stays high.
J.P. Morgan expects four rate cuts to bring the policy rate to 3.5%. https://money.usnews.com/investing/news/articles/2025-08-08/j-p-morgan-sees-fed-cutting-rates-at-each-of-its-next-four-meetings
But Americans are struggling. Fast food sales dropped hard last quarter. Starbucks down 2%. Chipotle off 4%. Pizza Hut down 5%. Jack in the Box fell 7.1%. Sweetgreen also lost 7.1%. McDonald’s barely up 2.5%. https://x.com/jonathanmaze/status/1953789705167724737
People are skipping meals. Inflation keeps prices high. The Fed says inflation is “somewhat elevated” and fears tariffs will keep it there. https://www.inc.com/phil-rosen/economic-outlook-fed-rate-cuts-labor-market-powell-trump-stock-market-investors/91222787
Hiring is slowing. Unemployment rose slightly from 4.1% to 4.2%. Companies want fewer workers. https://www.msn.com/en-us/money/markets/how-big-will-the-fed-rate-cut-be-this-fall/ar-AA1JSybI
Mortgage rates ticked up last week — because of tariffs, not growth. https://www.msn.com/en-us/money/realestate/will-mortgage-rates-rise-or-fall-this-august-heres-what-lending-experts-predict/ar-AA1JvNQq
The Fed is ignoring the danger. Prices are sky-high. Consumers are tapped out. Fast food sales confirm it.
Cutting rates now will blow the biggest bubble ever. The country’s hooked on cheap money. The fallout won’t be easy.
