Fixed income investors (like me) are entitled to a decent rate of return, and rates, including those for mortgages, are particularly high going back decades.
Interest rates should be decided by the market.
Trump should work with Congress to pass a law allowing Mortgages to be transferrable.
As much as I love Trump, he shouldn’t do that. A mandated max on interest rates for lending institutions would have ripple effects throughout the economy that he doesn’t foresee. What he could do is cut spending, putting less pressure on interest rates from “crowding out” by gov’t. He could also lower tax rates on corporations and the “rich”, which would induce a great flow of lendable capital and decrease corporate demand for external financing.
I heard an interesting proposal, which was for Trump to name Powell’s successor in advance—so he could act as the shadow Fed chair who would be giving future guidance that the markets would pay attention to before being given the office.
> Fixed income investors (like me) are entitled to a decent rate of return… <
CD savers/investors get hurt when interest rates drop (obviously).
But if you’re holding longer-term bonds and interest rates drop, the value of those bonds will increase. So there’s that, I suppose.
Watch what the Fed does at the T-bill auction. That’s one way they are manipulating the rates.
Is the economy growing, or is that the Biden admin fudging numbers?
I think that’s a big part of it, and the higher the interest rate, the more the US government has to pay on interest on the debt, I think Trump wants to reduce the deficit.
I’ve noticed that interest rates don’t listen.
Do away with the federal reserve. Let the free market and competition cotrol the economy.
The bond market will decide.
Leave the interest rate where it is; stop fiddling with it.
Going to be tough enough, slowing down the increasing rate of inflation.
Better to stop fiddling around with creating roadblocks for the flow of natural gas.
How far does he want the rates to drop? Remember, when the Fed Reserve dropped interest rates in the early 2000s, house prices skyrocketed, homeowners kept borrowing against their homes, and then everything crashed.
Entitled to high fixed income rates? That's the first time I've heard that.
SOOOOOOOOO A FED CHAIRMAN CAN SERVE FOREVER? NO TERM LIMIT?
To lower inflation, shouldn’t interest go up?
He just wants something from the Fed, so he’s opening up negotiations.
Your experience doesn’t appear to be the norm.
A record number of consumers are making minimum credit cards payments as delinquencies also rise
CNBC ^ | 1/23/25
Posted on 1/23/2025, 10:06:20 AM by EBH
Consumer stress has intensified, with an escalating share of credit card holders making only minimum payments on their bills, according to a Philadelphia Federal Reserve report.
In fact, the share of active holders just making baseline payments on their cards jumped to a 12-year high, data through the third quarter of 2024 shows.
The level rose to 10.75% for the period, part of a continuing trend that began in 2021 and has accelerated as average interest rates have soared and delinquencies also have accelerated. The increase also marked a series high for a data set that began in 2012.
Along with the trend in minimum payments came a move higher in delinquency rates.
The share of balances more than 30 days past due rose to 3.52%, an increase from 3.21%, for a year-over-year gain of more than 10%. It also is more than double the delinquency level of the pandemic-era low of 1.57% hit in the second quarter of 2021.
The news counters a general narrative of a healthy consumer who has kept on spending despite inflation hitting a more than 40-year high in mid-2022 and holding above the Fed’s 2% target for nearly four years.
(Excerpt) Read more at cnbc.com ..
If he is able to do that then inflation will go even higher than it is now. That will just push too much liquidity into the system, we need the reverse of that. It will just fuel more debt and and deficits.
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.