1. If they cut rates when the economy is running well, what do they do when things slow down?
2. Aren't rates being effectively cut anyway? Mortgages and consumer loans tied to U.S. Treasury rates actually DECLINED even while the Fed was raising its Federal Funds rate in late 2018.
They want to make sure the Fed’s attempts to undermine Trump don’t succeed by putting the brakes on the economy before November 2020.
Kind of silly logic we’ve been operating on (when it’s not someone like Obama in office) with: We need to put the brakes on the economy now so we can take them off after we grind it to a halt.
1. If they cut rates when the economy is running well, what do they do when things slow down?
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The economy is already slowing down.
If the Fed doesn’t artificially cause a recession like they usually do, then they won’t need to lower rates.
But if there were some type of financial emergency, tax cuts would be a better stimulus, anyway.
2. Aren’t rates being effectively cut anyway? Mortgages and consumer loans tied to U.S. Treasury rates actually DECLINED even while the Fed was raising its Federal Funds rate in late 2018.
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But the Prime Rate has gone up quite a bit on a percentage basis.