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Started By
Message
Economy is recovering... Why lower rates?
Posted on 6/19/25 at 12:37 pm
Posted on 6/19/25 at 12:37 pm
General curiosity... Lower rates would most likely increase inflation. Why not just leave them where they are?
This post was edited on 6/19/25 at 12:49 pm
14
Posted on 6/19/25 at 12:39 pm to bamabonners
I tend to agree with you, but Trump makes a real point that we could massively decrease our debt service by lowering just a single point or even a half point.
Posted on 6/19/25 at 12:40 pm to bamabonners
quote:
General curiosity... Loser rates would most likely increase inflation. Why not just leave them where they are?
The only legit reason is that something like $11T of US debt is up for refinancing this year. Lower the EFFR, lower the cost of federal debt servicing.
Anything else is a marginal reason.
Posted on 6/19/25 at 12:41 pm to bamabonners
To spur the economy and growth, a healthy economy does not mean they unhealthy inflation is a consequence. Inflation of the nature of growth is healthy for everyone. Inflation caused by regulations and currency manipulation is unhealthy, it’s what Joe SFP Obiden did. Lowering the rates helps us compete against countries that have already done so, and it will give the treasury a better rate to refinance the debt.
Posted on 6/19/25 at 12:43 pm to bamabonners
quote:
General curiosity... Loser rates would most likely increase inflation. Why not just leave them where they are?
With lower rates, people can buy more houses, cars, etc, which stimulates the economy.
People who have mortgages or car loans with higher interest rates can refinance to get a lower payment. This puts more money in their pockets to spend on things- which also stimulates the economy.
Posted on 6/19/25 at 12:52 pm to Placekicker
The economy doesn't need more stimulation. It's recovering now. Not everyone should be able to afford luxury items. Isn't that thinking what got our economy to burn too hot in the first place? As for the US debt, maybe we should stop spending like there's no tomorrow. See, that's the problem... We want to fix shite, but we want the easy button too. I say keep the rates where they are.
Posted on 6/19/25 at 12:53 pm to bamabonners
quote:
inflation
Is insignificant at this point. Housing prices on the other hand...
Posted on 6/19/25 at 12:56 pm to jrobic4
quote:
Is insignificant at this point. Housing prices on the other hand...
What price is acceptable? If rates come down, demand goes up. Prices will too.
Posted on 6/19/25 at 12:57 pm to bamabonners
Because the Biden administration refinanced a lot of debit short term that is coming due that needs to be refinanced
Posted on 6/19/25 at 12:59 pm to N.O. via West-Cal
quote:
I tend to agree with you, but Trump makes a real point that we could massively decrease our debt service by lowering just a single point or even a half point.
It’s scientifically proven that for each point saved servicing the debt results in an additional two points of spending in the budget.
Posted on 6/19/25 at 1:00 pm to MorningWood
quote:
Because the Biden administration refinanced a lot of debit short term that is coming due that needs to be refinanced
Then the government needs to find a solution to stop spending money on other things. They made the bed, time to sleep in it.
Posted on 6/19/25 at 1:06 pm to lsuconnman
“It’s scientifically proven that for each point saved servicing the debt results in an additional two points of spending in the budget.”
Alas, spending money we do not have enjoys broad bipartisan support.
Alas, spending money we do not have enjoys broad bipartisan support.
Posted on 6/19/25 at 1:07 pm to Padme
quote:
Inflation caused by currency manipulation is unhealthy
How exactly do you think they lower rates?
Posted on 6/19/25 at 1:16 pm to bamabonners
Why are you telling me and not your congressman?
Posted on 6/19/25 at 1:18 pm to bamabonners
Same reason Biden had to go.
Posted on 6/19/25 at 1:21 pm to bamabonners
quote:
The economy doesn't need more stimulation.
Just curious if you were on this board a month before the November election saying the same thing when Powell lowered not just 25 but an entire 50 basis points out of the blue? Let's see how "balanced" you are in your analysis -- show your work.
Posted on 6/19/25 at 1:22 pm to bamabonners
because some people only know how to make money when cost of capital is near 0
Posted on 6/19/25 at 1:26 pm to bamabonners
At my age it doesn't matter. But when I was young, just married and living in an apartment I determined when to buy a house by watching interest rates. I bet there are a lot of young couples doing the same right now.
Posted on 6/19/25 at 1:31 pm to bamabonners
The government will never pay down it's debt.
I don't care how low the rates are.
You can't do it without balancing the budget.
If you lower the rates, folks just spend more. It mat heat up the economy but, folks are still in debt.
You can't "spend " your way out of it.
I don't care how low the rates are.
You can't do it without balancing the budget.
If you lower the rates, folks just spend more. It mat heat up the economy but, folks are still in debt.
You can't "spend " your way out of it.
Posted on 6/19/25 at 1:33 pm to bamabonners
quote:That's what they continue to do...
Why not just leave them where they are?
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