The Federal Reserve made a modest reduction in interest rates Wednesday in an effort to keep the U.S. economy strong, a measured approach that stopped far short of the dramatic action President Trump has demanded for months.
The small, quarter-point reduction was meant to address fears about slowing growth in Europe and parts of Asia, as well as concerns that Trump’s trade war would remain a drag on growth well into the future.
So for the second time this year the Fed has opted to cut interest rates. A sign that the economy is not necessarily performing at peak levels, or the greatest ever in the history of the country, as some would like to believe.
This cut was due in part to global economic slowing, coupled with the continued Trump Trade War(C). The Fed did indicate it had little intentions of continuing to cut rates for the remainder of the year, and it appears that their target of ~2% Inflation continues to be realized and they believe will continue with this modest rate cut.
So, is this the best economy ever, if rates are needing to be cut? Were the cuts not deep enough for you?
Here is how the President felt, immediately following the release…
You’re telling me. I can remember when interest rates were a genuine factor when it came to financing large purchases. Now it is barely a drop in the bucket by comparison.
Yeah, I remember back in the day my aunt and uncle being so proud they bought their house before Volcker skyrocketed prime and they were paying less than almost anyone’s rent for a nice middle class crib.
Trump needs the cover for his trade war. I wonder how early it was in his term when he asked his staff how he could take over control of the Fed. It has to be a thorn in his side that he can’t do squat about how the Fed operates.
Good for them. They were in a small window minority, relatively speaking. I remember buying a home with rates in double digits, and it was gut-wrenching.
“Libs”" or really anyone seriously wants a recession. So to make that claim is kinda dumb.
What we are talking about is that the President is telling two opposite stories on a daily basis… that this is the best economy ever and that the Federal Reserve needs to inject liquidity into the money supply to keep the economy growing.
Those are two opposing ideas and trying to square them is impossible.
