The rate cut is a very bold move by the Fed to stimulate economic expansion, ease financial conditions and address inflation concerns with potential benefits for consumers.
But won’t this cut lead to increase borrowing, potentially fueling inflation? When interest rates are cut, borrowing becomes cheaper which can lead to increased consumption
Not necessarily, the cut will primarily benefit existing borrowers, reducing the cost of debt servicing, allowing individuals and businesses to allocate more resources towards other expenses or savings.
But what about savers? They’ll earn lower interest rates, hurting their income. Lower interest rates can indeed reduce the income earned by savers, particularly those relying on fixed income investment.
True, but the benefits to borrowers and investors outweigh the cost to savers. When we consider the broader economic landscape, the advantages of lower interest rate becomes clear.
I agree, lower interest rates boost economic growth, but we need to consider the impact on savers. To ensure they’re not unfairly penalized. We must look at the broader economic context.
The problem is they think they can fix everything. They need to bailout all the rich. All this does is increase wealth disparity and asset price to inflate. What balance sheet is this guy talking about. The Fed is not supposed to have a balance sheet. They have bought 7 trillion of assets. Which has caused havoc in asset pricing. And the 20% of inflation they have caused during the last 4 years. Why is this point the new normal. Why should we not have a deflation to go back to the normalized prices before pandemic with inflation.
Last 3 Fed pivots to the downside were: Aug. 1, 2019 Sept. 18, 2007 Jan. 3, 2001 Take from that what ye will. My comments are literally being pruned from RUclips by an AI when I mention anything b4d about the r4t3 kut
Great news! Another 0.5 by end of 2024. Another 1 by 2025 and 0.5 by 2026. This will bring it down to 3%. Hopefully businesses and the growth cycle will be back by 2027-2028 with reasonable interest rates?!
@@steveong4738 what did you expect? A cut of 300 base points? Monetary policies are like a cruise ship, you have to manoeuvre it smoothly, otherwise it will get messy.
The rate cut is a very bold move by the Fed to stimulate economic expansion, ease financial conditions and address inflation concerns with potential benefits for consumers.
But won’t this cut lead to increase borrowing, potentially fueling inflation? When interest rates are cut, borrowing becomes cheaper which can lead to increased consumption
Not necessarily, the cut will primarily benefit existing borrowers, reducing the cost of debt servicing, allowing individuals and businesses to allocate more resources towards other expenses or savings.
But what about savers? They’ll earn lower interest rates, hurting their income. Lower interest rates can indeed reduce the income earned by savers, particularly those relying on fixed income investment.
True, but the benefits to borrowers and investors outweigh the cost to savers. When we consider the broader economic landscape, the advantages of lower interest rate becomes clear.
I agree, lower interest rates boost economic growth, but we need to consider the impact on savers. To ensure they’re not unfairly penalized. We must look at the broader economic context.
Considering how the market barely reacted seems like it was priced in.
Last 3 Fed pivots to the downside were:
Aug. 1, 2019
Sept. 18, 2007
Jan. 3, 2001
Take from that what ye will
They will probably cut another 50 this year 100 next year. There will be easing all the way thru next year.
Leading up nicely to the Election. Another cut in November.
A surprise?? Not really, I figured you'd do it a few time right before the election.
its got more to do with Christmas selling season coming up.
@@raymondturpin3265 O ok. LMFAO!!
Good tie. Looks very handsome and smart. Good job, mom or wife.
All for nothing.
The asset bubble are untouched and prices are higher than any point in history
When does the unrest start ?
The problem is they think they can fix everything. They need to bailout all the rich. All this does is increase wealth disparity and asset price to inflate.
What balance sheet is this guy talking about. The Fed is not supposed to have a balance sheet. They have bought 7 trillion of assets. Which has caused havoc in asset pricing.
And the 20% of inflation they have caused during the last 4 years. Why is this point the new normal. Why should we not have a deflation to go back to the normalized prices before pandemic with inflation.
🤔🧐🤔🧐
Last 3 Fed pivots to the downside were:
Aug. 1, 2019
Sept. 18, 2007
Jan. 3, 2001
Take from that what ye will. My comments are literally being pruned from RUclips by an AI when I mention anything b4d about the r4t3 kut
Japan will raise interest then we will be seeing another crash soon
No, not so soon
@@user_cv8wysmstt why? Can you explain please
Great news! Another 0.5 by end of 2024. Another 1 by 2025 and 0.5 by 2026. This will bring it down to 3%. Hopefully businesses and the growth cycle will be back by 2027-2028 with reasonable interest rates?!
@@steveong4738 what did you expect? A cut of 300 base points? Monetary policies are like a cruise ship, you have to manoeuvre it smoothly, otherwise it will get messy.