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Pardon my ignorance, but wouldn't there be negative follow-on effects from the Fed deciding to reduce interest rates to zero because they can? If not, then woul
by nunez 1y ago
Pardon my ignorance, but wouldn't there be negative follow-on effects from the Fed deciding to reduce interest rates to zero because they can? If not, then wouldn't they have done that already or, better, simply kept it at zero?
- dh2022 1y agoOh, there will be bad effects from that -like inflation spike. The reason the interest rates are not zero is because the Fed still has some political independence. This independence will go away next summer when Trump will replace Powell with same tool of his liking.
- verzali 1y agoTurkey tried doing it for years. The result was high growth but utterly insane inflation - we're talking well over 100% per year, so that everything becomes unaffordable.