TRUMP SAYS LOW RATES WILL SAVE $600 BILLION. IS IT TRUE?
The numbers don't add up. The projected savings are wildly exaggerated. While lower rates do reduce borrowing costs, the actual savings are far less than claimed. The US doesn't need the lowest rates globally. The dollar's reserve status is powerful. Aggressively cutting rates risks inflation and a weaker dollar. Budget deficits are driven by spending, not just interest. Social security, tax cuts, and defense are the real culprits. Even zero rates won't erase the deficit. Lower rates offer benefits: cheaper borrowing, economic stimulus, and potential crypto gains. But risks are high. Inflation could surge, the dollar could plummet, and asset bubbles might form. The Fed's independence is key. Market fears can override rate cuts. This isn't a simple fix. Real solutions lie in fiscal reform, not just monetary policy. Expect short-term crypto boosts, but long-term debt remains a massive question.
Disclaimer: This is not financial advice.
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