rates up? with trump in office?
Discussion
Why would Trump cause rates to go down? 😂
he likes NGU in stock market and people happy with easy money.
Because he wants economic stimulus, he's going to try to strong arm Jerome Powell into lowering rates further.
Powell is hopelessly fighting inflation, already. Longer end is headed up, no matter what he does.
True, but I think Trump doesn't care and stimulus can outpace inflation while he is in office and then inflation is left to the next president. Only question in my mind is if JPow will resist Trump pressure or not, JPow seems determined to fight inflation that for sure.
Trump did it last time, and I think when the tariffs start taking their toll on everything they're going to implement more disastrous policies.
Personally, I wish they would raise them, or keep them at their current rate.
However the issue is inflation, job market, credit delinquencies, The National Debt, & supply chains are going to cause a lot of economic problems all at once, so either way it's a losing game.
Printers are going to Print.
i just understood this from a James Lavish newsletter that the longer rates are set by the market so it doesn't matter what they set the short rates to.
so mortgage rates for houses which are competing with 10 year and longer treasuries are stuck really high, which mean prices have to fall in a big way for houses to be sold.
inflation and deflation smh at the sametime!
Powell only sets the rate for the Federal funds rate, for parking cash overnight at the Fed bank. They hope that lowering this, will lead to other rates going down, but it just leads to consumer price inflation, as the parked money is withdrawn and dispersed.