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True panic is in the minds of The Democrats. They either don't know, or think we will not know, that The Fed is not under the control of the current President, no matter who he is.
The Feds only interest is the economy.
There is a strong belief that the POTUS does influence the Fed’s actions because Trump cajoled them constantly when they would not lower the rates at his insistence and that they were working against him. Trump basically appeared to “shame” Jerome Powell into kowtowing to his demands and gave at least the appearance that Powell should be grateful for his appointment and do what Trump dictated. This is why the Fed doesn’t seem so independent.
It is not about fighting the virus. It is about making corporate loans cheaper. Major employers getting by slowdown in business. U.S. airlines employee alone, ~850,000 people. Dependent on cash position, corporations will have to bridge what is shaping up to be a major revenue interruption. Layoffs may be coming anyway.
This doesn't sound good at all! Trump's economy was built on a house of cards apparently!
True panic is in the minds of The Democrats. They either don't know, or think we will not know, that The Fed is not under the control of the current President, no matter who he is.
The Feds only interest is the economy.
Clever. Aside from that, what good does cutting rates do to the economy? Business investment is down, yes, but with the virus out there, ez money is not going to spur any more until the picture is clearer. This seems like nothing but a bone tossed to bump up markets for Trump's benefit. And it appears that is is failing. Now the Fed has even less ammunition to deal with a recession where rates cuts might help.
The GDP under Trump has averaged 2.6% in just THREE YEARS. Obama had EIGHT YEARS and historically low interest rates and it average 2%.
Also that corporate and personal tax cut helped create the current, historically high Federal Tax Revenue.
Obama had negative GDP growth in 2009, due to the Great Recession that he was handed. For the next 7 years, the average was 2.2%. Pretty mediocre, yes. Trump has 2.4%. Is that really much better?
I don't think we ever left Quantitative Easing and so I have to question how solid our economy is if we have to continue cutting rates all the time.
How much volume does the market need?
Should we allow for corrections or continue to make cash to banks essentially free?
Are we spurring more borrowing at all levels and making a potential downturn worse?
All I hear is how great the economy is but I also continue to see knee-jerk reactions every time there is any wobble in the market. Is out market overpriced and over-evaluated? What is the magic number for the market that the Fed and other are looking to achieve with this cut?
The FED has raised interest rates FOUR TIMES under Trump and lowered them twice. So we did leave QE under Trump, and still at higher rates than with Obama.
Its weird the best economy in history of mankind requires constant stimulus. Its almost like its on life-support. Of course the anemic GDP growth tends to explain the economy is not as great as we are being told.
The last time the economy actually seemed decent was 2007. We were headed in the right direction though near the end of Obama.
0.5 is not a 'slight' rate cut. Most rate cuts are 0.25, so this is double the usual size. And with the Fed Funds target range at just 1.5-2.0, they just shaved off a quarter to a third of the entire FFR.
Which only goes to show their level of panic.
It is a massive cut considering the rates are already low. It boosted the market for about 1 hr, and now its down 400 points.
So why doesn't Trump learn a lesson from Obama? Trump keeps calling for the Fed to lower interest rates (which they have done; not so independent I guess), and the GDP growth under Trump has been just as weak as it was for Obama.
About to turn weaker than Obama ever was too outside his first year
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