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re: Why would the Fed lower the interest rate today?

Posted on 7/31/19 at 1:49 pm to
Posted by WildTchoupitoulas
Member since Jan 2010
44071 posts
Posted on 7/31/19 at 1:49 pm to
quote:

Why would the Fed lower the interest rate today?

Two words:

Currency manipulation.
Posted by Janky
Team Primo
Member since Jun 2011
35957 posts
Posted on 7/31/19 at 1:57 pm to
quote:

Two words:

Dumb arse


FIFY
Posted by NC_Tigah
Member since Sep 2003
125482 posts
Posted on 7/31/19 at 2:51 pm to
quote:

Two words:

Currency manipulation.
Two more words:

"Response to"

In fairness, this was a response to global currency manipulation.

Draghi is dead set on weakening the Euro.
Abenomics needs a weak yen.
China devalued in response to tariffs.
Meanwhile Powell ran up King Dollar.

Considering the global environment, it was a monetary policy mistake. Powell & Co are fortunate the US economy was strong enough to withstand headwinds overly hawkish Fed policy set in motion.
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