Posted on 07/31/2019 12:23:04 PM PDT by Innovative
The Federal Reserve on Wednesday lowered interest rates for the first time since the Great Recession in 2008 to help stave off the possibility of an economic downturn.
Policymakers led by Fed Chairman Jerome Powell voted 8-2 in favor of a small cut in the federal funds rate, and recommitted to their promise to "act as appropriate" to sustain the country's longest economic expansion in history.
Interest rates, which affect the cost of borrowing for credit cards and mortgages, are now set to hover between 2% and 2.25%.
The rate cut follows months of pressure from President Donald Trump, who has broken with his predecessors' practice of walling off the central bank from politics.
(Excerpt) Read more at cnn.com ...
No one creates Fake News better than The Red Star.
I’m surprised they didn’t give Obama credit for it.
I used to believe that as well...not now. There are 13 trillion dollars being loaned out around the world at 0 percent or less in different currencies. Its also one reason that the Fed is lowering interest rates here.
I am a little confused. The rate was cut but the market dropped 300 points at the time of this post.. What ? what? I thought this was supposed to be good news.
All central bank money at those rates. Not private money.
Except those dumb enough to buy bonds.
The Fed cuts rates when they expect an economic slowdown.
Less than market?
Who would lend their own money at less than 2% ?
NOBODY.
...
I didn’t say less than market.
People loan money to the government all the time at 2%.
They would charge less for short term if the Federal Reserve wasn’t manipulating the market.
The other day I saw a 1971 advertisement for a small color Zenith TV for $498.
This is the first time we've had a non-politician as President. IMHO, working out wonderfully so far.
God please bless President Trump, his family and advisers.
I am a little confused. The rate was cut but the market dropped 300 points at the time of this post.. What ? what? I thought this was supposed to be good news.
...
It wasn’t the rate cut that caused the drop.
Jerome gave the impression in his first press conference that he was clueless and that the Fed wouldn’t do any more rate cuts.
The Dow reacted with a 334 point dive.
...
See my post #29.
“Then again I can remember the neighborhood bank paying 4 % on a passbook savings account.”
I recall a similar rate and depositing $500.00 for the (savings and loan) to sell me a digital calculator (add, subtract, multiply and divide PLUS a constant key) for only $99.99.
I bought the calculator and gave it to my parents as a gift. At the time that had a manual adding machine with a tape (paper) and a handle for each entry...
It was a significant discount at the time...
They just had to throw in the “stave off recession” bit. I’m really not sure why they even did it except if the administration was pushing for it. Dare I say, to pay some favor? Rates are low enough, they just don’t need to go back up too soon and certainly not in an election year.
Exactly correct. It is the only reason to lower them now.
With federal spending ballooning, I suppose there is no way the rates can be increased anymore.... despite the deep state wishes to have a high dollar value salary...
Trump could order the treasury to coin a 1 trillion dollar coin and give it to the fed. That should lower the dollars value a little.
No, it’s not. All this is doing is trying to keep the Wall Street bubble inflated. Money printing is dangerous and always ends badly. We used to understand this back when the Democrats were in power. For some reason conservatives have been stricken with a bad case of amnesia and affinity for Keynesian economics.
Buy gold.
Yup!!
“The Dow reacted with a 334 point dive.”
Not unexpected.
Buy on the rumor, sell on the news.
There is a phrase used by investors.
“Buy on the tumor, sell on the news”
The markets ran up in anticipation of the rate cut and when it materialized traders took some profits. This happens all the time and it was a small move of just over 1%
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