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I am surprised by the negative comments, the low interest rates = better thesis has always been somewhat popular on HN , now just because Trump is saying it (an

I am surprised by the negative comments, the low interest rates = better thesis has always been somewhat popular on HN , now just because Trump is saying it (and operating to get there) it becomes an issue or something not to be aligned with. There are countless comments and discussions on this board about how: 1) interest rates should be zero, 2) interest rates being non-zero create a misallocation of capital where there is a return on an investment without any ingenuity or creation behind 3) Banks are too risk averse to lending and their risk averse behavior is due to the risk free rate they enjoy when they park money at the Fed and when they buy T-bills No matter how little ingenuity or creation is required to keep afloat a zombie company or a dubious startup, for sure it's a notch higher than what happens when that money is parked at the Fed or invested in t-bills...

layer8 9mo ago
Even if one disagrees with Fed policy, the way Trump is having the DoJ criminally prosecute Powell under unrelated pretexts is disgraceful and undermines the Fed’s independence.
bakies 9mo ago
the fed's goal is zero interest rate, it's not that people are negative because "tRuMp SaId So" it's because he's trying to influence the fed's decision with criminal prosecution of the chair and not through his economic policy. His policy is ass and that's why the fed can't get back to their ZIRP goal
- JumpinJack_Cash 9mo ago
  The rate should be zero regardless of any other consideration. The dismantling of the fed would be in order
- presto8 9mo ago
  The Fed's interest rate goal (which is half of their dual mandate) is 2%.
  - bakies 9mo ago
    I believe that's the inflation goal, which is one of the two mandates. The other goal being maximum employment. But I was wrong about ZIRP anyway. It's not a goal to get there it's what was used to strengthen the economy after 2008 and 2020 economic hardships.

layer8 9mo ago

Even if one disagrees with Fed policy, the way Trump is having the DoJ criminally prosecute Powell under unrelated pretexts is disgraceful and undermines the Fed’s independence.

bakies 9mo ago

the fed's goal is zero interest rate, it's not that people are negative because "tRuMp SaId So" it's because he's trying to influence the fed's decision with criminal prosecution of the chair and not through his economic policy. His policy is ass and that's why the fed can't get back to their ZIRP goal

JumpinJack_Cash 9mo ago
The rate should be zero regardless of any other consideration. The dismantling of the fed would be in order
presto8 9mo ago
The Fed's interest rate goal (which is half of their dual mandate) is 2%.
- bakies 9mo ago
  I believe that's the inflation goal, which is one of the two mandates. The other goal being maximum employment. But I was wrong about ZIRP anyway. It's not a goal to get there it's what was used to strengthen the economy after 2008 and 2020 economic hardships.