We owe so much money to the fed that lower rates will ease our burden as a nation with respect to paying them back. It also allows us to borrow more at a rate that can be paid back. If the free market was allowed to dictate the interest rates, there would be a good balance between what we owe and save.
The bigger issue for Trump is competition on a global scale as related to that balance. If other countries are borrowing money at 0% interest while we are paying 2.5%, the difference in interest will be billions more dollars out of our ability to invest in our nation.
There is a larger picture to the existence of the fed. They are a private bank that loans us money they don’t actually have. The interest we pay back is the only thing of value. It’s how they are so powerful and can control the global economy with small moves in interest rates.
Depends, lower rates bumps up the stock market, increasing business earnings, new jobs, etc. Lower rates help individuals on a situational basis and the country's economy as a whole. Higher rates help some people and builds a fall out prevention for bubble bursts (i.e. when stock market crashes, emergency rate cuts can mitigate the damage, which is easier if the rate is high).
We pay interest on the “loans” we have with the Fed. Lower rates mean we pay less in interest. Think credit card bills and their APR.
Higher rates, however, allow for middle America to earn small amounts of interest on their savings accounts.
It’s a balance that the Feds fucks with regularly to prevent the free market from making gains for the little guy. It is a private bank, after all.
We owe so much money to the fed that lower rates will ease our burden as a nation with respect to paying them back. It also allows us to borrow more at a rate that can be paid back. If the free market was allowed to dictate the interest rates, there would be a good balance between what we owe and save.
The bigger issue for Trump is competition on a global scale as related to that balance. If other countries are borrowing money at 0% interest while we are paying 2.5%, the difference in interest will be billions more dollars out of our ability to invest in our nation.
There is a larger picture to the existence of the fed. They are a private bank that loans us money they don’t actually have. The interest we pay back is the only thing of value. It’s how they are so powerful and can control the global economy with small moves in interest rates.
Depends, lower rates bumps up the stock market, increasing business earnings, new jobs, etc. Lower rates help individuals on a situational basis and the country's economy as a whole. Higher rates help some people and builds a fall out prevention for bubble bursts (i.e. when stock market crashes, emergency rate cuts can mitigate the damage, which is easier if the rate is high).