When you are already speeding down hill, you do not peddle even more feverishly, for there is little need and it increases the likelihood you will just crash.
The economy, wages, employment, business revenue and investment are all doing well, and somewhat resulting from different actions already taken by government and the fed.
The economy is in no need of more fuel from the Fed at this time. That fuel WILL make for a bubble somewhere. That bubble will burst and could bring the economy down with it like the housing bubble did in 2008.
Not much chance of that. Open all the valves now!!!
Sorry if I don’t join you on a 1/4 point reduction in the rate is going to be the end of the world.
By that logic, interest rates should always be insanely high, that way no one will ever over leverage.
Remember, lower bond yields, equal lower interest payments having to be made by the Treasury as well.
Probably the main counter argument to the rate drop, is well if things go to poop, you are already at 2%... you can’t go much lower to stimulate growth should serious contraction begin.
As long as there are bigger fools there will always be bubbles, regardless of interest rates.
Sorry, but if you think the housing bubble was due to a .25 point cut in rates, you are insane..
Go do a little research at what the funds rates were during the build up to the final 2008 collapse... it was NOWHERE near 2%.. in the 3 years before the collapse the rates were between 3 and 5%.... By your logic, we would have to be in an insane bubble already.... (which we could be, but the .25 rate cut sure as hell isn’t going to cause it).
You do realize the FED is a PRIVATE enterprise right? That your tax dollars PAY the fed interest to have MONEY in the economy?? Its the ultimate scam... Here US, we’ll let you borrow money from us to put into circulation, at an interest rate, that you will promise to pay back with future tax receipts... Its LITERALLY a license to print unlimited money into a very small number of folks pockets.
You really want to have some fun.. have the mint actually start printing not FEDERAL RESERVE NOTES, but REAL DOLLARS AGAIN.. with NO FEDERAL RESERVE INVOLVEMENT... Then we can see some REAL fun.
But back to the point, the idea that what WALL STREET wants is whats good for America has been disproven quite well over the last several decades, to say the least.
I don’t trust the FED, never have, their motivations are not in the best interest of all, no matter what they claim.