Posted on 01/23/2025 9:24:22 AM PST by Miami Rebel
End the Fed!
Trump sounds just like any other real estate state agent or investor or builder or buyer. Always pimping for lower rates. Jawboning won’t do it.
The Fed can exercise some control over short term rates but little over long term rates. The exception being the fed can induce a recession and some times cause rates to drop but as Jimmuh found out high rates, no growth and inflation can all exist at the same time.
Want low rates? Quit the fed from borrowing so much, lower spending. The US is on the verge of becoming a default risk. Once that party starts Trump will see Jimmuh rates.
Since Trump seems to have no desire to lower spending we are headed for an interest rate train wreck.
To be sure, the loud noise coming from Washington is all tax cuts, not spending cuts.
Trump is right. Rates are too high. Neutral is about 150BP lower.
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