The Fed’s real message: Save the economy from Trump The central bank is expected to cut rates this week in part to offset President Donald Trump’s trade war. https://www.politico.com/story/2019/07/30/powell-trump-trade-interest-rates-1625961
Aren't we already at 4.35 for mortgage lending? The fed can MAYBE cut once, but holy crap we are in danger if we hit a real recession and we are already below 4%. This seems wildly premature, and if it really is necessary by Powell's distinction then its a sign that the fed probably should have hiked rates much higher during the post Obama boom.
Feds around the world are cutting. Even Yellen thinks we should be cutting now. They think we are in danger. This is trying to put up a preventive measure to stave off major pain. Reality is that the next big recession is probably coming and the Fed is going to be powerless to help.
Market is at a all time high. Employment is very good. We are cutting rates and running up deficit. Wouldn't you do this when economy is going bad to boost it?
I don’t get it though. Rate cuts are there when the economy is need of recovery. What happens when a real down turn and recession hits and the rates are too low to make a difference. What are we going to do? Maybe thoughts and prayers that has worked so well in other crisis.
