Except in the debacle of the 70’s where one day the Fed reduced rates from 13% to 7.5% one day, the Fed has dealt usually in increments of 25 basis points.
That was after – I lived through it and I never really knew what had caused it or what had happened (the Vietnam war and its profligate attendant spending may have had some part in it) – everything went to shit inflation-wise during the Nixon administration.
We were making 8% on savings accounts – hooray!!
But we were paying 13% for mortgages – Boooo!!
So it wasn’t a settled sort of situation.
But Paul Volker was hired and he did his job and inflation came to heel like a well trained dog.
And it has been that way pretty much ever since.
So we have been in an era of 25 basis point changes to the Fed rate – up or down depending upon whether the Fed was juicing the economy, or slowing it - ever since.
donnie thinks we need an at least 100 basis point (1% or more) cut.
(By the way, the Fed rate is currently 2,25%; much more than 1% – donnie – and we go to zero; when that happens people, the citizens you are supposed to be representing, start paying the banks to house their money.)
I guess one of your emoluments is the ability to invoke economic problems from which you as a private citizen, whose tax returns are hidden from the electorate, can benefit ahead of time, by appropriate investments.
But who really cares?
After all, the Evangelicals have Bret the Beer Drinker.
And Super Skier.
And a Supreme Court which is the punch line of a bad joke: “What happens when you cross a pig and a drumpf”?
But I have digressed substantially from what I had on my mind when I titled this post.
What that was – what I had on my mind - is this:
If the economy is so good why do we need a historically high interest rate cut?
donnie says things economically speaking are going great because of him.
The fact that things economically speaking were going great in November 2016 is not something to be discussed.
But if things are – still – going so great, why do we need a huge Fed rate cut to shore up the GREAT donnie ECONOMY and his – he says this all the time – HIGHLY SUCESSFUL TRADE WAR?
The reason is that not only is donnie the dildo a liar, he is a two faced, two mouthed, liar.
He speaks out of both sides of his mouth at all times, and the idiots love it.