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Annual US inflation falls to 3-year low, clearing the way for the Fed to begin cutting rates (apnews.com)

submitted 2 months ago by [email protected] to c/[email protected]

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Year-over-year inflation reached its lowest level in more than three years in July, the latest sign that the worst price spike in four decades is fading and setting up the Federal Reserve for an interest rate cut in September.

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[–] [email protected] 6 points 2 months ago (2 children)

Then how do hedge funds get the free money to gamble with since apparently that's what the world economy is built on.

[–] [email protected] 2 points 2 months ago

They still can borrow, but they need to actually do some level of due diligence that what they throw money at can actually succeed.

[–] [email protected] 1 points 2 months ago

They abuse the market mechanics. Same as banks. This is why the carry trade is so levered up. Our borrowing rate here is far higher than in Japan so they are backing Japanese borrowing with US assets for additional leverage and then loaning to us investors against that capital. It's a clusterfuck.