if the Fed chair lowers rates (when the demand for Treasuries has kept market rates fairly steady for 3 months https://ycharts.com/indicators/3_month_t_bill) then the cost of borrowing goes down for small businesses to borrow money and create products and jobs. Lower int. rates would provide help for the housing market, = enabling refinancing mortgages at lower rates, possibly preventing someor many foreclosures.
However, with high deficit spending still, how would the big institutions react? It takes a good int. rate to convince bondholders to continue financing the $36 trillion national debt. Could lowering rates trigger a bond market crisis?
Politics: Jerome Powell = appointed byPres. DJT. Optics. if Pres. asks the Fed chair to do thing when he knows the Fed chair is not ready to lower int. rates, this makes it look like the Fed is independent, so that if the Fed lowers rates later, Pres. Trump does not get any blame for any adverse affects on the economy.
some thoughts: time stamp 1:44 pm EDT, Q 144 has SA awhile Pres. DJT = in Saudi A. at this time.
Q 144 also has “[s]” and this was a topic in GAAw thread yesterday https://greatawakening.win/p/19BGFNmRc4/was-this-the-comm-from-potus/c/
thoughts on The Fed and lowering interest rates:
if the Fed chair lowers rates (when the demand for Treasuries has kept market rates fairly steady for 3 months https://ycharts.com/indicators/3_month_t_bill) then the cost of borrowing goes down for small businesses to borrow money and create products and jobs. Lower int. rates would provide help for the housing market, = enabling refinancing mortgages at lower rates, possibly preventing someor many foreclosures.
However, with high deficit spending still, how would the big institutions react? It takes a good int. rate to convince bondholders to continue financing the $36 trillion national debt. Could lowering rates trigger a bond market crisis?
Politics: Jerome Powell = appointed byPres. DJT. Optics. if Pres. asks the Fed chair to do thing when he knows the Fed chair is not ready to lower int. rates, this makes it look like the Fed is independent, so that if the Fed lowers rates later, Pres. Trump does not get any blame for any adverse affects on the economy.