Your post is ridiculous. Low interest are key to economic growth and Trumps political survival. Their only down side is is inflation ( no sigh of that) and some old people end up eating dog food. Ha ha.
This is flat-out wrong. Let's go back and look at the top annual GDP growth rates since 1970 and see what the FED discount rate was at those times:
1984: Annual GDP growth 8.4%, FED rate ranged from 8.37% to 9.00%
1973: Annual GDP growth 5.9%, FED rate ranged from 4.77% to 7.50%
1978: GDP 5.6%, FED rate 6.50%-9.50%
1976: GDP 5.4%, FED rate 5.25%-5.79%
1999: GDP 4.9%, FED rate 4.50%-5.00%
Now compare that to the period from 2012-2016. The FED discount rate was 0.75% all the way up to 2015, then rose to 1.00% in 2015 and rose again to 1.25% in 2016. Here are the GDP growth figures for those years:
2012: 2.2%
2013: 1.7%
2014: 2.6%
2015: 2.9%
2016: 1.5%
10 yr Treasury bond % yield
Dec 30, 2013 - 3.006
Dec 29, 2014 - 2.123
Dec 28, 2015 - 2.275
Dec 27, 2016 - 2.446
Dec 26, 2017 - 2.405
Dec 27, 2018 - 2.773
At this rate we might get all the way back to the rates that existed at the end of 2013.
Of course the 10 yr was yielding 3.232% last November 8th, before the last Fed funds raise, and it’s fallen since.
Funny how all the “world’s gonna end because of interest rates” hysteria didn’t start until after the last Fed funds rise on December 19th. Were the chicken littles asleep in November? You didn’t hear a peep out of them before because the stock market didn’t have their attention.
“Low interest are key to economic growth “
US Prime Rate during the Reagan years:
January 2, 1981 - 20.50%
February 8, 1982 - 16.50%
January 11, 1983 - 11.00%
March 19, 1984 - 11.50%
January 15, 1985 - 10.50%
March 7, 1986 - 9.00%
April 1, 1987 - 7.75%
February 2, 1988 - 8.50%
February 10, 1989 - 11.50%
Seems as if those high prime interest rates didn’t kill economic growth during the Reagan years.
Compare that to Obama, who had prime rates from 3.25 to 3.75 and somehow didn’t have an economic miracle.
Current Prime Rate, December 20, 2018 - 5.50%