After relentless, psychotic attacks from Trump, the Federal Reserve announced it would cut interest rates—a move experts warn could come back to haunt the US economy
that “insurance cuts” have a downside, because keeping rates low can lead to excessive borrowing and asset bubbles. As thenotes, “already there are concerns about too much risky corporate lending, and lower rates are only likely to encourage more of those loans,” adding that using up the tools the Fed has at its disposal now leaves the central bank with fewer ways to counteract an actual economic contraction down the road.
There’s also concerns that the Maniac-in-Chief has put the Fed in a dangerous position by making it seem as though, if you want to affect monetary policy, all you need to do is berate Powell so many times on Twitter that people wouldn’t be surprised to hear you’d showed up to his house in the middle of the night and took a 9-iron to his Toyota, screaming about interest rates as nearby car alarms blared and concerned neighbors looked out their windows to see what was going on.
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