I Have Never Seen Such A Concerted Campaign To Lower Interest Rates

[gab13by13]

It has been going on for months. Now we see the effects of tariffs are starting to show; wholesale prices are up more than expected. Inflation is on an upward trend.

The bond market is headed higher which is an indication that inflation is coming.

My theory still holds, that Krasnov wants to crash the dollar and boost crypto where he has made billions of dollars. He demanded that the Fed lower rates to 1%, like a 3.5% rate cut, why?

[edhopper]

1. Because he doesn't understand Economics

Wharton diploma not withstanding.
He wants growth and business like low rates so they can steal borrow from the government and not have to pay for it.
Higher rates slow the Economy, which is needed to curb inflation.

[Aristus]

2. The George W. Bush Administration went wild cutting both savings and lending interest rates.

With a definite goal in mind: to discourage saving and encourage borrowing. The rich assholes of this country don’t want the rank and file Americans building generational wealth. They want us drudging away in debt to them, in inescapable poverty.

[unblock]

3. As always with Donnie, it's about power and control. He wants a toady running the fed

He doesn't even want lower interest rates *yet*. He wants lower rates going into campaign season next year.

If the timing works out for him, lower rates next year would boost the economy and the stock market during the campaign, and the higher inflation from lower rates wouldn't kick in until after the election. That's what he wants in terms of interest rates.

But the jawboning now is more about control. He knows the fed can't lower rates now because the fed can't fight the market indefinitely and the market is saying no no no, no rate cuts while inflation is still a bit of a problem.

He's just complaining to build political support for replacing Powell at the fed with a lapdog who will move rates around whenever Donnie wants, no matter how disruptive to the market the moves may be.

[Wounded Bear]

4. Lowering rates in the face of increasing inflation will give us stagflation...nt