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The entire reason the markets give the response wanted after a rate cut is because of the decision being made independently of politics. A politically enforced
by treebeard901 9mo ago
The entire reason the markets give the response wanted after a rate cut is because of the decision being made independently of politics. A politically enforced rate cut may still boost the economy in the short term, over the longer term the interest rate mechanism will not be trusted. This will defeat the entire purpose for very limited gain.
Behind all of this is another fact that the conditions around the U.S. reserve currency are changing quickly. This is happening with just interest payments on existing debt being the largest cost every year.
No matter who controls the Government, soon they will all be forced to cut spending in a large way and be forced to try to inflate themselves out of this coming debt crisis.