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Lowering interest rates to juice the economy is done when unemployment rises … which hasn’t happened yet in the wider economy. Juiced economy and free cash is
by midnightclubbed 6mo ago
Lowering interest rates to juice the economy is done when unemployment rises … which hasn’t happened yet in the wider economy.
Juiced economy and free cash is what led to massive inflation. Powell is trying to save hay until winter - when we get a recession the interest rates cuts are the only knob he has to turn to soften the blow.
- pvelagal 6mo agoHe inflated the market on purpose for longer than needed. Every economist was screaming to stop and he also played games during elections by lowering interest rate when it was not needed. This only resulted in rates being higher for longer.