Not just any kind of loser.
“With these costs trending so nicely downward, just what I predicted they would do, there can almost be no inflation, but there can be a SLOWING of the economy unless Mr. Too Late, a major loser, lowers interest rates, NOW,” Trump wrote.
lol the market is crashing from this shit. and more and more people are piling into gold
I never used to be a goldbug, but nowadays…
same. also grabbed some euro currency shares. maybe some of my tiny nest egg will survive this to buy a $15,000 essential car part a year from now
We could be for a hell of a ride. Can Trump legally fire the Fed chair? [More inside]
all my index funds, gone
Pls fire Powell, it would be very funny watching the line go down faster.
He’s gonna try and make Powell own the recession huh?
Cutting the interest rates would stimulate the economy and make recession less likely. In fact, the raising of interest rates due to fears of post-covid inflation (which was inevitable since the supply chains were fucked) caused huge pressure on working class real incomes. That’s kind of what got Trump into office in the first place.
if he successfully bullies Powell into lowering the rates, there will be a short window where it’s an awesome time to buy a house. Cheap rates and a bear housing market and incoming recession. Get it before the window closes and inflation rips your savings to shreds
Just wants a fall guy
This wouldn’t lower rates on my credit cards would it?
Legally, banks must hold part of their liquidity in accounts with the Federal Reserve. The Fed in turn pays them interest for keeping their funds in those accounts. That’s the federal rate.
Since banks may want to use their liquidity, they’ll sometimes withdraw it and use it elsewhere, and take a loan from another bank with larger reserves to cover that legal minimum. The bigger bank has no reason to charge any less than the Fed rate, because that’s what they get paid at minimum. So the Fed rate influences how much banks can charge each other for these overnight loans.
Higher fed rates means banks will keep their money close and collect interest, slowing down inflation and making loans across the economy more expensive, since all loans have to compete with the zero risk free money from the Fed. If the Fed rate goes down, banks will lend more freely and cheaply. This causes inflation because there’s more money sloshing around and it’s cheaper to get the money.
This has basically nothing to do with credit card debt, which is charged at much much much higher rates than the Fed rate already. They’ve got no reason to lower it.
