Just saw a piece of news—Trump is back again, calling for rate cuts. This time he really looks like he’s losing his patience.
He says that interest rates in the U.S. are currently too high and the country can't handle them. If they cut by 1 percentage point, they can save roughly $600 billion-sounds painful just hearing it. He also complains that the current "arbitrage/strategies" rate framework is "unfair," and he even praises the Fed chair for doing a good job. But then he turns-saying the board is seriously "politicized." In other words, even if the chair is great, it can't make up for the people underneath who are underperforming.
Honestly, after Trump keeps pushing this over and over, is he genuinely worried about the economy-or does he have other motives? I won't wildly speculate, but one thing is pretty clear: if the Fed really can't hold on and starts cutting rates, with money getting looser, it definitely isn't bad news for our circle here. When liquidity was loosened in history, how risk assets performed is something even old "rookie" investors know well.
hold on and starts cutting rates, with money getting looser, it definitely isn't bad news for our circle here. When liquidity was loosened in history, how risk assets performed is something even old "rookie" investors know well.
But don't get too excited either. Over there, the July meeting minutes still have a bunch of officials being stubborn-saying they want to keep high rates. It's a tug-of-war. Who wins isn't certain.
As for the market-panic won't help. If it falls, pick it up slowly; if it rises, don't get carried away. Same old playbook.
$MAGMA
$RE
He says that interest rates in the U.S. are currently too high and the country can't handle them. If they cut by 1 percentage point, they can save roughly $600 billion-sounds painful just hearing it. He also complains that the current "arbitrage/strategies" rate framework is "unfair," and he even praises the Fed chair for doing a good job. But then he turns-saying the board is seriously "politicized." In other words, even if the chair is great, it can't make up for the people underneath who are underperforming.
Honestly, after Trump keeps pushing this over and over, is he genuinely worried about the economy-or does he have other motives? I won't wildly speculate, but one thing is pretty clear: if the Fed really can't hold on and starts cutting rates, with money getting looser, it definitely isn't bad news for our circle here. When liquidity was loosened in history, how risk assets performed is something even old "rookie" investors know well.
hold on and starts cutting rates, with money getting looser, it definitely isn't bad news for our circle here. When liquidity was loosened in history, how risk assets performed is something even old "rookie" investors know well.
But don't get too excited either. Over there, the July meeting minutes still have a bunch of officials being stubborn-saying they want to keep high rates. It's a tug-of-war. Who wins isn't certain.
As for the market-panic won't help. If it falls, pick it up slowly; if it rises, don't get carried away. Same old playbook.
$MAGMA
$RE