A recession in the U.S. is generally defined as two consecutive quarters of declining GDP. And GDP generally declines for one or both of the following reasons: (1) population declines, and/or (2) productivity declines.
Over the last 20+ years, we have seen weak growth in this country for one reason related to Item (2) above: Our overall productivity has declined as we have had more retirees and generally unemployable people living in this country.
Interest rate reductions aren't going to do anything to change these things. What they ARE going to do is make it easier for people who ARE productive to borrow more money to keep their standard-of-living treadmill going.
Here are some quotes about and from Judy Shelton, one of Trump’s Fed nominees:
*** Steve Forbes:
Great news that @realDonaldTrump plans to nominate the brilliant @judyshel to Federal Reserve Board. She will ask hard questions. She is stout foe of nonsense idea that prosperity causes inflation.
*** Judy Shelton:
I will indeed, Steve. You’re an inspiration. Productive economic growth, which leads to higher levels of output, justifies wage gains. It is not inflationary @SteveForbesCEO
https://twitter.com/judyshel/status/1146540713645154305
_______________________________________________________________________________
*** Stephen Moore:
Judy Shelton is a champion of sound money and a stable currency. She understands growth does not cause inflation, and is a great choice for the Fed.
https://twitter.com/StephenMoore/status/1146403319306424320
_______________________________________________________________________________
*** Judy Shelton:
Artificially suppressed/elevated interest rates cause malinvestment. Should minimize central bank intervention in favor of market-determined rates.
https://twitter.com/judyshel/status/1143103060631146496
_______________________________________________________________________________
*** President Trump:
I am pleased to announce that it is my intention to nominate Judy Shelton, Ph. D., U.S. Executive Dir, European Bank of Reconstruction & Development to be on the board of the Federal Reserve....
*** Judy Shelton:
I am very honored and grateful for the statement from President Trump and will strive to support the U.S. pro-growth economic agenda with the appropriate monetary policy. Unlimited potential beckons for America and the world.
https://twitter.com/judyshel/status/1146228871118938113
_______________________________________________________________________________
*** Judy Shelton:
Phillips Curve reasoning leads to harmful monetary policy: high employment is not inflationary when increasing productivity results in higher output.
https://twitter.com/judyshel/status/1141689318307696641
_______________________________________________________________________________
Judy Shelton’s Gold Standard:
A gold-backed bond was first proposed in 1981 by Alan Greenspan. I think the U.S. should issue them as an experimental pilot program, similar to the TIPS bond, that compensates people who are concerned about the future value of the dollar. For those who are concerned about a big financial meltdown, these bonds would give them some insurance, as gold tends to rise in price during periods of financial stress.
The Chinese would welcome this development, because it would likely be a stabilizing force for the value of the dollar and protect their dollar holdings. I also think they are the most likely country to provide a parallel instrument. If China were to offer a similar instrument where five years from now you can get back x amount in yuan or an ounce of gold, five years from now both the U.S.-issued instrument and the China-issued instrument are worth the same thing, an ounce of gold. So now you start getting projections of a stable exchange rate determined by market forces.
If this practice starts to spread to even more countries, you would start to see the semblance of a future stable exchange rate system with those exchange rates being determined by what market forces believe about the future value of those currencies.
https://fortune.com/2016/08/18/trump-gold-standard-economic-advisor-woman-judy-shelton/