You don’t use up all of your ammunition before the battle even begins.
The U.S. economy has not even officially entered recession territory yet, although many experts are definitely anticipating one in 2020. When that recession arrives, the Federal Reserve is going to want as much ammunition to fight it as possible. So I was horrified to learn that the Federal Reserve announced on Wednesday that interest rates are being slashed once again. We have now had three interest rate cuts in 2019 as the Federal Reserve desperately attempts to revive the stalling U.S. economy. But what are they going to do during the next recession when they have already pushed interest rates all the way to the floor and they can’t push them any lower?
In addition, in recent days the Federal Reserve has decided to absolutely flood the financial system with new money in a desperate attempt to stabilize the repo market. In essence, the Federal Reserve has launched a massive new round of quantitative easing even before a major crisis has erupted on Wall Street. I can understand trying to be proactive, but in reality quantitative easing is an extreme emergency measure that should only be used in the most desperate of situations. If the Fed is creating this much new money now, what are they going to do once things really get bad? Are we destined to become the next Venezuela?
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7 comments:
Hasn’t Trump been complaining about the Fed and why rates are so high? Perhaps the Fed is jamming free money down his throat in hopes our economy will gag.
The Fed has destroyed the income of fixed income elderly Americans.
1.5 trillion dollars has been lost to seniors and fixed income Americans in the last 2 years because of Trumps insistance on low interest rates. And over 6 trillion over the past 8 years.
That's also of money that would've been spent into the economy, not reinvested.
Causing people 65 years old or older to work to their death.
While the rich get richer and poor get poorer.
Trump has to go. Not for a democrat. But for a sane republican.
If you are speaking of cola, it is tied to the inflation rate which is now measured different due to obama in an effort to keep inflation hodden from the public due to his printing 3 trillion dollars out of thin air, keep drinking the kool aid
"Comrad"
8:29
Please stop.
You are going to hurt yourself. Trump is trying his level best to right this sinking ship and all you can do is think about you.
Just go back to sleep.
"But what are they going to do during the next recession when they have already pushed interest rates all the way to the floor and they can’t push them any lower?"
Well, they will do what they have done in other countries back in 2008-2009. They will go to negative interest rates; that is, they will CHARGE interest on money in the bank to discourage saving and encourage spending money instead of stashing/saving it. Better buy a really good safe to keep the feds away from your money.
8:29.., thank you. I agree, no trump vote for me!!!
The author seems to be under the illusion that the Fed (a private for profit secretly owned bank) cares about the economy or people. They do not. More pump and dump. They are extremely rich and powerful people because they rig markets. Stocks, Bonds, COMEX, you name it they rig it.
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