Interest rates should be set by the free market. The Fed creates boom bust cycles tinkering with rates and for decades has provided insiders with unfair advantages. Many will be surprised when the long rates rise as they cut rates. Their gig is up.
Don't forget the massive impact of uncertainty. As a multi-business owner who speaks with other owners every day, the single most commented concern shared by all is uncertainty. And the impact is truly massive. No one is hiring, no one is spending on improvements or growth. Everyone is just trying to tread water and survive.
In my 50+ yrs of life in this wonderful USA, I have never seen a case of 'own goal' stupidity. With the possible exception of the helping the capital asset world, what's happening will undoubtedly hurt 329 million of the 330 million US citizens. Seems like a win.
I do not think it is entirely an issue with the FED that the economy is such a mess. They are trying to put out fires not started by them and look bad no matter what they do. Clearly they are too reactionary as we have seen in the past, but the Tariff debacle has been a totally moving target. We still have uncertainty regarding where the most impactful tariffs will land. This has caused international uncertainty in markets, not only here. Many of the current policies of this regime have not been good for jobs. We need inexpensive energy for AI and future technology. By reversing much of the Biden clean energy agenda, they have destroyed huge numbers of jobs and made the cheapest cleanest forms of energy delayed. This is a great way to Make America Stupid. At the same time, anyone who has open eyes can see that China has already surpassed their 2030 clean energy goal and are now at ~50% Solar, Wind, Hydro energy production. This is good for the environment and the cost is much lower.
The Fed is very obviously political. Remember the years of ZIRP under Obama? We will be paying the bill for that folly for decades.
Interest rates should be set by the free market. The Fed creates boom bust cycles tinkering with rates and for decades has provided insiders with unfair advantages. Many will be surprised when the long rates rise as they cut rates. Their gig is up.
Truflation is not monetary inflation measurement. The money supply has increased by 4.8% year over year. That’s your true inflation.
there's also a lot of outsourcing happening since 2020
Don't forget the massive impact of uncertainty. As a multi-business owner who speaks with other owners every day, the single most commented concern shared by all is uncertainty. And the impact is truly massive. No one is hiring, no one is spending on improvements or growth. Everyone is just trying to tread water and survive.
In my 50+ yrs of life in this wonderful USA, I have never seen a case of 'own goal' stupidity. With the possible exception of the helping the capital asset world, what's happening will undoubtedly hurt 329 million of the 330 million US citizens. Seems like a win.
I do not think it is entirely an issue with the FED that the economy is such a mess. They are trying to put out fires not started by them and look bad no matter what they do. Clearly they are too reactionary as we have seen in the past, but the Tariff debacle has been a totally moving target. We still have uncertainty regarding where the most impactful tariffs will land. This has caused international uncertainty in markets, not only here. Many of the current policies of this regime have not been good for jobs. We need inexpensive energy for AI and future technology. By reversing much of the Biden clean energy agenda, they have destroyed huge numbers of jobs and made the cheapest cleanest forms of energy delayed. This is a great way to Make America Stupid. At the same time, anyone who has open eyes can see that China has already surpassed their 2030 clean energy goal and are now at ~50% Solar, Wind, Hydro energy production. This is good for the environment and the cost is much lower.