Posted on 09/18/2019 12:00:01 PM PDT by BeauBo
The central bank announces it’s taking down its benchmark overnight lending rate to a target range of 1.75% to 2%.
According to the Fed’s “dot plot” of individual expectations, five members thought the FOMC should have held its previous range of 2% to 2.25%, five approved of the 25 basis point cut but keeping rates there through the rest of the year, and seven favored at least one more cut this year.
The Federal Reserve approved a much-anticipated quarter-point interest rate cut Wednesday but offered few indications that further reductions are ahead as members split on what to do next...
Major U.S. stock exchanges dropped after the decision was announced...
President Donald Trump, who has called Fed policymakers “boneheads” for not cutting rates enough, tore into Wednesday’s decision, saying Chairman Jay Powell and his colleagues have “no ‘guts.’” Trump says the Fed is risking U.S. competitiveness by keeping rates substantially higher than most of the rest of the developed world. The committee again cites “the implications of global developments for the economic outlook as well as muted inflation pressures” as the primary rationale for Wednesday’s cut.
(Excerpt) Read more at cnbc.com ...
And that’s because those pension funds were invested in bonds, probably by law. The stock market where 401ks and IRA’s are has done way better.
Having said that, I will also say that much of the GDP growth we’ve seen over the last 40 years has been completely artificial ... because it was based on what I call the “monetization of non-monetary activity.” In a nutshell, what this means is that we have a lot of things counted in our GDP today that were either non-existent or inconsequential years ago. A perfect example of this would be day care. Raise your kids at home yourself, and your contribution to the GDP is $0. Pay $1,000 per month for someone else to do it, and you now have $12,000 added to the GDP that didn’t exist before.
And trade is only 10% of the economy. Why put the 90% at risk over 10%?
2% GDP is not great. Should be at least 4%. This will help.
...
They keep adjusting it down.
You believe the numbers? I don’t.
Who do the think those in this governmental entity voted for? Will vote for?
Lowering the interests rates to almost zero is tho only thing that kept the Obama years out of recession. Then they wanted to stall the recession to make Trump look bad so the Feds raised rates on him. The Feds are corrupt an political as hell.
We can print sovereign money like we used to.
Remember Silver Certificates instead of Federal Reserve notes.
I get your POV and it was mine until last night. Now I have lots of questions. Looking at unemployment rates, which went up bigly after the 2007 housing crash, Unemployment was steadily coming down (these are the reports, not my numbers) and available jobs were slowly rising all through the Obama years. That’s what the stats show, not how I felt at the time or even now. So how could that be?
We know a lot of jobs moved overseas and industrial jobs declined here. There were higher taxes. There were way more regulations. All brought on by the Obama socialists.
If the goal was to control (or wreck) the US economy, then Obama policy was doing that. If the Fed was trying to prevent a recession, that would have been counter to further wrecking.
It seems like it comes down to a bunch of control freaks who really didn’t know what the hell they were doing but definitely enjoyed being in charge, because I don’t see any rationale to the fiscal policy at all during that time.
And under Obama the Fed added to the 0% interest rates massive quantitative easing and the economy was still in the dumper.
We can do even better than that... look into Kinesis!. A gold/silver yield based monetary system that changes everything!
The problem is that the the fed is political. However, the bigger more destructive problem is the Republicans and the “right wing” refusal to admit that the fed is totally politicized and pretends that it’s not. Either go along and play the political fed game to win or change the system. The do nothing pretend option, is well, not an option.
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