Trump wants interest rates to go lower... The Fed disagrees

The Fed just raised interest rates by .25%. I am not sure how much coverage this will get inside America. But it will show up on the mortgages, car payments and credit card bills of all Americans soon enough. And add a little Pumpkin Spice to that $40 Trillion overseas debt as well. Now .25% doesnt amount to a hill of beans by itself.. But that Trumps new pet Fed Chair couldnt hold the line against a rise when Trump demanded a drop (The vote by the Board to lift rates was unanimous) speaks volumes. Fasten your seat belts folks. Its going to be bumpy ride for us all. None more than Americans..😷

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GeistInTheMachine · 31-35, M

Trump is doing a good job at keeping the Yankee in line, lmao.

whowasthatmaskedman · 70-79, M

@GeistInTheMachine Sorry. I didnt get past "Trump is doing a good job.." before doubling up with laughter..😷

CorvusBlackthorne · 100+, M

This is a classic tactic of Republican politicians in the United States. They do something blatantly performative and dramatic, such as demanding that the Fed lower the interest rate. This, coupled with other, similar tactics, does make it appear as though the economy is improving, but it only serves to work in the short run. For perhaps six months to a year, or even two years if they are fortunate, prices on everyday items average Americans purchase will be lowered. But then the long-term negative consequences are felt.

For that reason, this is a common tactic practiced by lame duck presidents such as Mr. Trump. They inherit an economy which is just beginning to recover from the last Republican president, thanks to the efforts of the previous Democrat president. They lower interest rates, decrease taxes on the rich, and for a short time, everything seems to be going better. Then a Democrat takes office, just as the temporary bubble bursts.

This is why they love the poorly educated.

ViciDraco · 41-45, M

@CorvusBlackthorne Things are just falling apart on them this time because the economy only barely managed a soft landing. Democrats didn't have time to stabilize things and build up extractable wealth in the economy before Republicans got it again. They've been trying to squeeze water out of a dry sponge and when it doesn't work they think it's because they have to squeeze harder. They cannot admit the sponge isn't wet but it's so visibly dry that even their faithful are having trouble not seeing it.

whowasthatmaskedman · 70-79, M

@CorvusBlackthorne OK. I think we can safelt go beyond "Poorly educated"to describe Americans currently. Check this out.😷
[media=https://youtu.be/iFgKK33y1N8]

Pretzel · 70-79, M

I wonder how DT feels about his new Chosen One upping the rates?

whowasthatmaskedman · 70-79, M

@Pretzel Lets be clear on this. It was the economy that demanded the rates be lifted, or inflation would skyrocket. The Fed board had to recognise reality. Unlike the President. Reality is for Losers..😷😷

Pretzel · 70-79, M

@whowasthatmaskedman not questioning his choice. There was some concern that he was going to be yet another fan boi. So I'm wondering how the prez will post on tuth social tonight

whowasthatmaskedman · 70-79, M

@Pretzel My money is on "it didnt happen". Its too soon to be blaming this appointment on Biden..😷

ViciDraco · 41-45, M

I don't think Trump understands that low interest rates feed inflation far more than even stimulus checks do. To him, cheap debt helps businesses expand and grow (and buy out smaller operations). I am not sure he understands that multiple things can be true at one time. Or, he may not care because people will remember the short boom and not the long term decline after - kind of like with Reagan.

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