Free Republic
Browse · Search
General/Chat
Topics · Post Article

To: blackdog

Inflation may be softening a little bit but in order to keep it contained best not to cut too much IMO. That said, the consumer is carrying record levels of debt right now and the housing market is somewhat frozen so a small cut might be beneficial to the economy.

But, to your point, Powell clearly has a political agenda. Recall that he cut rates by 50 basis points a mere 48 days before the 2024 election, an obviously political decision. After Trump’s victory, Powell was forced to cut another 50 to try to make the first cut look unpolitical.


28 posted on 07/31/2025 8:31:06 AM PDT by Starboard
[ Post Reply | Private Reply | To 22 | View Replies ]


To: Starboard
Fixing consumer debt levels needs to be done by consumers refusing to use high interest credit cards on high balances. Use them like American Express cards. Just pay off your full balance each month. Spend only what you can pay off.

Once interest rates drop below 5%, some other bad things happen. Companies performing badly use lines of credit supported by increased stock prices based on speculation value. If a company can't turn a 10% before taxes profit, stay away from the stock. It's too easy to pump the stock with PR, keep borrowing 2% money to meet operating costs, and you eventually find a crash.

31 posted on 07/31/2025 8:44:09 AM PDT by blackdog ((Z28.310) "Diggin the scene with a gangster lean" (Mayfield, Curtis) )
[ Post Reply | Private Reply | To 28 | View Replies ]

Free Republic
Browse · Search
General/Chat
Topics · Post Article


FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson