Re: Fed cut rates 3 times in 2019 under Trump, moron.***

Clemchem, do you still think the Fed will cut rates

RememberTheDanny

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Re: But last time you said 3, and that it was a conspiracy?***

Apr 11, 2024, 1:39 PM

I suspect that the ‘Biden’ Fed was interested in cooperating with the Biden Admin’s political objectives to juice the economy while simultaneously attempting to keep inflation rates from going up.

IMO, this is typical behavior for the Federal Reserve … at least with regard to the typical for presidential administrations that are supportive of the Bureaucratic States of America agenda. G.H.W.Bush, Clinton, GWB, and Obama seemed to get this kind of ‘cooperation’ from the Fed during election years.

Trump was howling for rate cuts in 2018 or 2019 (I don’t remember specifically which year that was) but didn’t get it. That was a good thing; rate cuts were not needed for an economy that was already totally addicted to ~ free money. (As for Obama getting cooperation for ‘free money’ from the Fed through the end of his 2nd term … in order to help Hildebeast’s electoral prospects … he got that cooperation.)

On to the Fed and the OBiden Handlers Admin: The Fed dearly wanted to cut rates. Powell’s propagandist-esque signaling to the market about 3+ rate cuts in 2024 was intended to keep the stock market strong and to keep money circulating rapidly throughout the economy.

Unfortunately, too much of the massive and unjustified spending by the OBiden Handlers Admin was for endeavors which provided no meaningful stimulus to the economy. The highways / bridge spending did (still does) have an ‘economy stimulating’ effect. However, the expansion of the federal bureaucracy (more Border Control agents, IRS agents, Dept of Education lawyers to bring suits on behalf of illegal immigrants’ ‘civil rights,’ etc) does not stimulate the economy. It is not good economic policy for the govt to create problems (lose control of the border) so that more bureaucrats need to be hired to ‘fix’ the problem. Too much spending that had little -or- zero -or- negative impact on the economy is highly inflationary.

Oh yeah, and the student loan forgiveness program, even if the WH can’t get this white whale past the legal roadblocks, is also a high inflation / minimal economic stimulus policy.

Back to the Fed’s pickle. Inflation is a worse political problem for OBiden Handlers Admin … at this moment in time … than a high-on-cheap-money economy. Lowering the interest rates will create worse political problems (I.e., more inflation) than it will to create political advantage (I.e., keeping the stock market pumped up).

So … it isn’t likely that the Fed will actually lower rates before mid-year. I’m betting that there will not be any rate cuts this year. Heck, after the election … regardless of whether Trump -or- The Handlers get elected, there will be a rate increase.

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