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Started By
Message
re: Trump Demanding that Interest Rates Drop
Posted on 1/23/25 at 3:02 pm to RogerTheShrubber
Posted on 1/23/25 at 3:02 pm to RogerTheShrubber
quote:
Unemployment rate 4.2%
Trump wants inflation.
I don't think he WANTS inflation, but that's what we'll get.
Interest rates aren't really high right now. They're just higher than the super-low rates that we got accustomed to. Plus, those rates were a direct result of a single demographic phenomenon that's over now. They can't really go down much until the Millenials are in their prime high-earning/lower-consuming years.
0
Posted on 1/23/25 at 3:06 pm to RogerTheShrubber
Trump wants to push close to the zero rate that he had in 2019. Of course its inflationary, but low interest rates are a winner politically. But it won't mean affordable housing.....the opposite. But Wall Street will love it for a while.
Posted on 1/23/25 at 3:11 pm to KiwiHead
quote:
Trump wants to push close to the zero rate that he had in 2019.
He was bitching about it then, and wanted QE to return when the economy was "booming"
quote:
Trump calls on Fed to cut rates by 1% and urges more quantitative easing
Published Tue, Apr 30 20192:06 PM EDTUpdated Tue, Apr 30 20193:03 PM EDT
This economy was built on constant stimulation, not organic growth. I assume we will see more of the same.
Posted on 1/23/25 at 3:13 pm to KiwiHead
quote:Lol. They won't?
low interest rates won't mean affordable housing
Posted on 1/23/25 at 3:14 pm to L1C4
quote:
low interest rates won't mean affordable housing
Lol. They won't?
If demand increases, prices will rise substantially offsetting interest rate cuts.
Posted on 1/23/25 at 3:15 pm to LSURussian
quote:
"rates are too high."
Posted on 1/23/25 at 3:18 pm to RogerTheShrubber
That hasn't been the experience in my area.
It's a sellers market right now because there isn't much for sale. Why?
Because no one is going to sell their house when they are paying a 3% rate to borrow more money at 7% rates.
It's a sellers market right now because there isn't much for sale. Why?
Because no one is going to sell their house when they are paying a 3% rate to borrow more money at 7% rates.
Posted on 1/23/25 at 3:24 pm to L1C4
What's the motivation for more affordable housing with low rates? I can afford " more house" or in this case I can afford to possibly by the 1600 sft home in Mandeville for 325 -335 K.
You think that this will spur builders to come down on prices and existing homeowners to take haircuts on the sale? Unless you have a glut of new construction like in 2005, I don't see it. But that would lead to other problems. I don't want history rhyming again.
You think that this will spur builders to come down on prices and existing homeowners to take haircuts on the sale? Unless you have a glut of new construction like in 2005, I don't see it. But that would lead to other problems. I don't want history rhyming again.
Posted on 1/23/25 at 3:24 pm to FizzyPop
quote:
I'm afraid Powell is absolutely Left leaning and will dig his heels against Trump just to spite him
Based on what? Posted on 1/23/25 at 3:26 pm to L1C4
Why do you think Trump wants to lower rates?
Posted on 1/23/25 at 3:26 pm to L1C4
quote:You keep assuming every homeowner has a mortgage.
Because no one is going to sell their house when they are paying a 3% rate to borrow more money at 7% rates.
Millions of U.S. homeowners own their houses free and clear of debt, including me.
I've paid cash for the last 4 houses I've bought. It's called "trading up."
Posted on 1/23/25 at 3:26 pm to KiwiHead
In my area, I've seen some housing prices almost double.
And it ain't because of low interest rates.
And it ain't because of low interest rates.
Posted on 1/23/25 at 3:28 pm to RogerTheShrubber
quote:Because that's what the people want.
Why do you think Trump wants to lower rates?
Posted on 1/23/25 at 3:29 pm to RogerTheShrubber
quote:
Trump pushed for these things in 2019 when the economy was solid
Rog, you're far too bright to keep going to that well. The Fed was eager to increase rates from the aberrant lows it maintained throughout Obama's tenure. from late 2016-2019, it took advantage of the Trump economic acceleration to raise ("normalize") Fed fund rates.
In 25 months following Trump's election, the Fed raised rates 600%. That was despite inflation remaining at or below target. Trump justifiably perceived the FFR increases as an economic headwind. He expressed concern about it as the FFR peaked in Jan 2019. In fact, it was obvious to most economic players the Fed overshot.
Akin to the slow Fed response to "Transient Inflation" of Q1-2 2021, the Fed was too slow in correcting its Jan2019 FFR overshoot. During the ensuing ~6months, as the economy slowed, Trump became more vocal about inexplicable FFR policy. Finally the economy slowed to the point Powell&Co were forced to reverse policy, not by Trump, but by the economic damage rapid FFR escalation wrought.
None of that is even debatable. Your TDS aside, we've discussed this on several occasions.
Posted on 1/23/25 at 3:32 pm to Big Scrub TX
quote:
Based on what?
He was asked the other day if he would step down even if Trump asked he said no. I can understand his position but he’s done nothing to help this country. It would be different if he were actually working to help fix a few issues. Like L1C4 just posted, people want this fixed and that’s one reason of many of why trump is doing this.
Posted on 1/23/25 at 3:33 pm to ronricks
quote:
Because that is not how it works. Powell was more than favorable to Trump last time now he is some boogeyman. You guys don't even remember how we got to this point with inflation and if someone tells you you will reject it. The idea that Trump spending 6 to 8 trillion dollars didn't usher in inflation but Biden's 6 to 8 trillion did is just stupid. That's not how any of this works.
Raising hell and working the levers until his name was on that last stimulus check was the most hilarious part of all lol...
https://www.rcfp.org/trump-covid-checks-abc-news/
Posted on 1/23/25 at 3:36 pm to L1C4
quote:
Because that's what the people want.
Lowering rates will initially increase demand, which over the course of months will increase pricing.
Local rental prices are still through the roof here, because investors bought a quarter or more of all properties for sale to turn into rentals.
If you want lower prices, drop regulations and lower barriers to entry, let people build the shite out of rentals. Lowering the rate is just asking for inflation.
Posted on 1/23/25 at 3:38 pm to L1C4
quote:OR prices could go down.
but if you want affordable housing, mortgage interest rates need to drop.
Posted on 1/23/25 at 3:39 pm to ronricks
quote:
Make this make sense.
Lower gas prices, lower inflation, Fed will drop rates like they were already goonf to do
Not very hard to grasp unless you are dumb
Posted on 1/23/25 at 3:40 pm to momentoftruth87
quote:That's the evidence that he is a leftist hellbent on opposing Trump?
He was asked the other day if he would step down even if Trump asked he said no. I can understand his position but he’s done nothing to help this country.
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