Congrats to the fed. As I said last year/months ago, every time in history when the Fed has raised rates three times in a year, a recession has followed within the next year Well they did four times in a year and a quarter.... looks like they’re getting their wish.
Odds are increasing they’ll cut the rate again at their next meeting a quarter or even half a point. Some serious talk about them lowering the reserve requirement as well - which I think would be stupid. Lowering banks capital when there’s no quality loan demand and a recession seems to offer a lot more potential for harm than good. But they’re looking like they’re starting to panic
And then there’s the drag of the national debt. Even though we haven’t seen the crowding out effect yet due to the feds manipulations.
We’ve never been here before. Will be interesting year or two ahead
Odds are increasing they’ll cut the rate again at their next meeting a quarter or even half a point. Some serious talk about them lowering the reserve requirement as well - which I think would be stupid. Lowering banks capital when there’s no quality loan demand and a recession seems to offer a lot more potential for harm than good. But they’re looking like they’re starting to panic
And then there’s the drag of the national debt. Even though we haven’t seen the crowding out effect yet due to the feds manipulations.
We’ve never been here before. Will be interesting year or two ahead
