Trump Economy.
Feds will probably cut rates too. Bad news for 2020 Democrats. "If you want the economy to tank and be poor again, vote for us".
Cutting rates now will lead to inflation.
there are no economic fundamentals indicating that interest rates should be cut.
The only reason to cut them would be to improve Trump's chances for re-election.
The FED would be acting in private interest rather than public interest.
(06-07-2019, 11:40 PM)Last42min Wrote: [ -> ]Quote:The FED would be acting in private interest rather than public interest.
Shocker.
From what I have read this is the first time since the late sixties that a president tried to directly influence interest rates.
So, yes, shocker.
The FED is a private interest. But go on and complain about Trump some more.
(06-08-2019, 06:56 PM)Last42min Wrote: [ -> ]The FED is a private interest. But go on and complain about Trump some more.
It's private and public. Mostly public. but regardless of who owns it, it was chartered to serve the public interest, not to make private profit.
Its charter gives them goals called a "dual mandate."
Neither mandate is helping the president re-elected.
Chartered to serve the public, lol. In secret.
(06-07-2019, 04:47 PM)mikesez Wrote: [ -> ]Cutting rates now will lead to inflation.
there are no economic fundamentals indicating that interest rates should be cut.
The only reason to cut them would be to improve Trump's chances for re-election.
The FED would be acting in private interest rather than public interest.
You have no idea how wrong you are. Did you happen to see the jobs report for May? Have you looked at the yield on a 10 year treasury note? Do you not realize that we are in a trade war right now?
(06-08-2019, 04:04 PM)mikesez Wrote: [ -> ] (06-07-2019, 11:40 PM)Last42min Wrote: [ -> ]Shocker.
From what I have read this is the first time since the late sixties that a president tried to directly influence interest rates.
So, yes, shocker.
Meh... influence... insert eye roll here.
First of all.. he's just making comments in line with his thought process all along. Nothing new. And he isn't trying to influence the rates, he's just commenting on how much they kept rates low for Obama and have constantly raised them under his tenure.
Neither are lies.
He doesn't want them to hike the rates to a point of hurting his economy, higher rates tend to hurt American exports and manufacturers, something he has been staunch on trying to rebuild.
The point is.... we don't want rates at 0, but we don't want them to continue rising.
Shocker that you people are still shocked by anything that happens in D.C.
(06-09-2019, 06:34 AM)jagibelieve Wrote: [ -> ] (06-07-2019, 04:47 PM)mikesez Wrote: [ -> ]Cutting rates now will lead to inflation.
there are no economic fundamentals indicating that interest rates should be cut.
The only reason to cut them would be to improve Trump's chances for re-election.
The FED would be acting in private interest rather than public interest.
You have no idea how wrong you are. Did you happen to see the jobs report for May? Have you looked at the yield on a 10 year treasury note? Do you not realize that we are in a trade war right now?
I don't think any of those three things are exactly what they should be looking at.
They are supposed to look at unemployment (keep it as low as possible) and inflation (target 2%).
Granted, the jobs report is one component of the derivative of the unemployment rate with respect to time, but what are the other components indicating? Even if you saw the entire derivative, a good control system reacts to more than just a derivative.
Inflation is a bit lower than they would want it, but it may be time to consider if the 2% target is appropriate given the broader realities this generation sees, with greater energy efficiency, more automation, and reduced business travel (more webinars, for instance) confounding previous assumptions about what a healthy economy looks like.
(06-20-2019, 11:17 AM)mikesez Wrote: [ -> ] (06-09-2019, 06:34 AM)jagibelieve Wrote: [ -> ]You have no idea how wrong you are. Did you happen to see the jobs report for May? Have you looked at the yield on a 10 year treasury note? Do you not realize that we are in a trade war right now?
I don't think any of those three things are exactly what they should be looking at.
They are supposed to look at unemployment (keep it as low as possible) and inflation (target 2%).
Granted, the jobs report is one component of the derivative of the unemployment rate with respect to time, but what are the other components indicating? Even if you saw the entire derivative, a good control system reacts to more than just a derivative.
Inflation is a bit lower than they would want it, but it may be time to consider if the 2% target is appropriate given the broader realities this generation sees, with greater energy efficiency, more automation, and reduced business travel (more webinars, for instance) confounding previous assumptions about what a healthy economy looks like.
Those three things are part of what should be looked at right now. The weak jobs report for May is a signal that the economy could possibly be slowing down. The 10 year treasury yield is the benchmark for corporate bond and mortgage rates which are at a low right now. A lot will ride on negotiations with China and how tariffs might or might not be implemented. After the Fed meeting this week they voted to hold rates steady for now, but all signs point to at least 1 rate cut before the end of the year with some thinking possibly 2 cuts.
I for one would like to see the rate unchanged for the time being.