'Boneheads' no more? Fed's rate cuts appear to defuse Trump's Twitter rage

Reuters ^ | December 12, 2019 | by Howard Schneider

[Oldeconomybuyer]

[DannyTN]

Better late boneheads than never boneheads.

[babble-on]

Stock market’s up, unemployment’s down, GDP growth low but positive. Any normal cycle the opposition wouldn’t even bother running a candidate.

[Crucial]

The long term problem is that the economy is weak compared to the first half of the last century. It doesn’t seem to me that raising interest rates to an acceptable level for savers is possible without causing a severe downturn. We are too far in debt, too taxed and too regulated. Trump has helped but we need more economic liberty.

[Pelham]

This has always been sound and fury about mostly nothing. The Fed makes a good pretend villain.

Short rates need to about 2.5% or there will be no way to prime the pump if the economy goes into recession. We’ll be stuck with a negative interest rate option otherwise.

[StolarStorm]

They don’t seem to be running a real candidate... at least not from the current batch.

[mewzilla]

The Creature from Jekyll Island is just keeping its powder dry...

[Pelham]

“It doesn’t seem to me that raising interest rates to an acceptable level for savers is possible without causing a severe downturn.”

Only the shortest of rates can be set by the Fed. Like overnight lending rates.

Longer rates are determined by market forces. And since the rise of China there appears to be a dollar savings glut that is keeping down the long rates that savers depend upon.

[BoneHead]

Your Title sir, offends me.

Bonehead

[Luke21]

I knew it was one of the loser media outfits. Rooters sucks.

[Pelham]

The Creature would like a short rate of 2.5% to 5% in order to have its primary tool for breaking out of a recession.

The current rate is 1.5% to 1.75%.

[mewzilla]

The Creature is Deep State and wants Trump gone. It’s exercising patience.

[af_vet_1981]

Short rates need to about 2.5% or there will be no way to prime the pump if the economy goes into recession. We’ll be stuck with a negative interest rate option otherwise.

No; our trading partners and competitors already have low or negative rates and an inverted yield curve is irrational. Short term rates should drop further to defend competitive trade markets.

[Oldeconomybuyer]

LOL

[youngidiot]

The fed seems to think that economic growth causes inflation, which is absurd.

[Pelham]

So you’re okay with negative interest rates when we next go into recession? Because that is what will happen if the Fed has no room to drop rates.

[Pelham]

“The Creature is Deep State and wants Trump gone.”

A favorite tinfoil fantasy.

[MNJohnnie]

yeah no spin there. They did what he wanted so better headline

Partisan Fed board reverses course, caves to Trump's demand to cut rates".

[VanDeKoik]

Think 1996 with the GOP.

Same thing, same result.

[buckalfa]

Trump's Twitter rage?

Such a target rich environment but so little time in the day to properly excoriate all that deserve verbal thrashings.