Posted on 01/26/2025 3:31:53 PM PST by Mariner
The problem with promising all things to all people is that eventually tradeoffs become inevitable.
While running for president, Donald Trump pledged he would tackle the scourge of inflation that sparked a cost-of-living crisis for many Americans, while simultaneously leading the country to record wealth and prosperity—a difficult balancing act to pull off.
Now, just three days into his new administration, he’s already pressuring Federal Reserve Chair Jay Powell to stimulate the economy by reducing the cost of borrowing. This comes in spite of the U.S. central bank’s concerns that recent consumer price data is coming in hotter than it would like.
“I’ll demand that interest rates drop immediately,” Trump told the World Economic Forum (WEF) via webcam on Thursday.
(Excerpt) Read more at yahoo.com ...
Increase the cost of imported goods.
The very last thing this economy needs is a reduction in rates.
Artificial gov’t price controls always backfires.
Gov’t breaks unbreakable economic laws of supply, demand, and price points by doing so.
Decrease exploited criminal labor. Increase investment in American goods. We’ll be much better.
Given how well the left and elite conventional wisdom has been I will go with Trump on this, these people have literally been wrong about everything and anything they have promoted has always been to the destruction of the working class.
“We’ll be much better”
Yes, as long as we keep the lid on inflation.
The problem with Capitalism is the government is always getting the way.
He can lower prices at his properties.
The problem is high property prices.
Interest rates are very low considering inflation.
PIMCO and B of A both see the Fed sitting tight, or INCREASING rates due to inflationary pressures.
Just print more pennies.
Slow printing of money and slow spending and inflation will come down rapidly.
Does billionaire Trump have money to lend at lower interest rates?
“Interest rates are very low considering inflation.”
Yes, the Fed funds rate should be at least 6% to cool down the inflation.
Not true of you have on offset like “oil production” and “less illegals” in the US buying goods and services.
Interest rates have been too low for too long. Better to incentivize people to stop living on debt. The biggest problem, of course, is that the federal budget will be eaten up by interest payments if rates stay higher, but that’s a box that has no way out that doesn’t severely harm average Americans UNLESS we grow the economy. We won’t grow the economy, though, if we don’t keep inflation under control, which requires higher rates.
“Slow printing of money and slow spending and inflation will come down rapidly.”
A balanced budget will relive some of the pressure, but don’t hold your breath on that.
Real spending cuts are politically impossible and tax cuts are on the way.
Dump the Fed. Run with Trump.
The FED should not be setting interest rates. Let them do their job of controlling the money supply. That is their only real job
“Not true of you have on offset like “oil production” and “less illegals” in the US buying goods and services.”
Cheap oil will relieve some pressure.
It remains to be seen how many illegals are actually removed. If we get a million I’ll be pleasantly surprised.
Call a wahmbulance.
With all this change, we are in for a wild ride before things settle down. Anyone expecting a smooth Cadillac ride, better get off now.
There are going to be a lot of bumps on the road.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.