Succinct Summation of the Rate Cut Debate

Succinct Summation of the Rate Cut Debate:

Cut,

1)From the November Fed Beige Book, "Economic activity rose slightly in most Districts. Three regions exhibited modest or moderate growth that offset flat or slightly declining activity in two others."

2)On the labor market from the Beige Book, "Employment levels were flat or up only slightly across Districts. Hiring activity was subdued as worker turnover remained low and few firms reported increasing their headcount."

3)On inflation from the Beige Book, "Prices rose only at a modest pace across Federal Reserve Districts. Both consumer-oriented and business-oriented contacts reported greater difficulty passing costs on to customers."

4)The average interest rate being paid on a credit card is 23%, consumers need relief.

5)Small businesses are paying on average 9-10% for a loan, costly. Many commercial real estate owners/investors are in financial pain.

6)The average 30 yr mortgage rate is back above 7% according to Bankrate and existing home sales are around 30 yr lows.

7)The low to middle income consumer is financially stretched.

8)The US manufacturing recession is now past two years.

9)Capital spending outside of AI continues to flat line.

10)Global trade is punk with particular weakness in Germany, France and China.

11)Get in one more rate cut before a time out.

Don't cut,