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To: Miami Rebel

The fed could lower rates AN ENTIRE POINT in this economy!!!

WTF are they waiting for? It to turn bad again?


3 posted on 09/04/2026 7:41:26 AM PDT by Mr. K (no consequence of repealing obamacare is worse than obamacare itself.)
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To: Mr. K

Let me try to explain for the umpteenth time:

Lowering short-term rates = cheapening the dollar. It is expansionist/inflationary.

It is a step central banks take in a weakening economy.


6 posted on 09/04/2026 7:45:54 AM PDT by Miami Rebel (RE)
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To: Mr. K

“The fed could lower rates AN ENTIRE POINT in this economy!!!”

So you want 15% inflation?
Government needs to spend less money and have lower deficits.


7 posted on 09/04/2026 7:47:30 AM PDT by HereInTheHeartland (“I don't really care, Margaret.”)
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To: Mr. K
That is absolutely ridiculous. The current inflation rate is 3.4%. The current Fed benchmark interest rate target is 3.5 - 3.75%.

If interest rates were dropped 1%, the interest rate would be less than the inflation rate. Who in their right mind would lend money at less than the inflation rate? Where is the risk premium there? Geeez

11 posted on 09/04/2026 7:59:50 AM PDT by volare737 ( Diversity is something to be overcome, not celebrated. e)
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To: Mr. K

Check it more of a TDS issue they answer to many other people too.


47 posted on 09/04/2026 11:24:59 AM PDT by Vaduz (NEVER TRUST A DEMOCRAT)
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