We’ve binged on debt from a personal balance sheet point of view and cutting interest rates isn’t going to cure the problem.
I believe the fed is smart enough to know this, but its very possible they will cut rates by .25 basis points tomorrow. They are stuck between a rock and hard place on this one right now. Damned if you do, damned if you don’t.
The answer to the question is. Is the fed willing to sacrifice the value of the american dollar and all those retirement savings, for short term fixes?
Call me biased, but I won’t have any retirement savings if liquidity isn’t restored...as I’ll be out of work or, at least, making so little money I don’t care what the dollars are worth, as I won’t have any.
I’m exaggerating a bit, but realistically, you have to understand that a LOT of people would benefit from a rate cut and don’t give two sh&ts about inflation right now. Most prices that have gone up are unrelated to anything the Fed does...energy, food, etc.