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Federal Reserve slashes interest rates to zero as part of wide-ranging emergency intervention

Rexedgar

Rexedgar

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Federal Reserve slashes interest rates to zero as part of wide-ranging emergency intervention


No economist here, but help me out. Now the Fed has complied with Trump’s request. Last week 1.5 trillion dollars was released to the monetary system. The National Emergency freed up another 40-50 billion dollars. The administration is saying that people will be paid for sick leave even if the employers dont provide it. Are the presses at Engraving & Printing just running non-stop?

The Federal Reserve made an emergency interest rate cut to zero on Sunday night, a dramatic step meant to make borrowing as cheap as possible for American households and businesses as the coronavirus brings the U.S. economy to a near standstill.
 
liberal hoax
 
With the interest rate so low and the cash infusions, I believe the Fed is now out of tools.
 
SheWolf said:
With the interest rate so low and the cash infusions, I believe the Fed is now out of tools.
Click to expand...

Yes, you are correct. Seems like this is not going away in the near future, I think they just ****ed us over for the long haul.......
 
I think the enormity of the economic aspect of this is beginning to dawn on people.

I made a post last week that people may not understand and I get that, but I still have to be vague, but in an economic sense I’m on the frontline of what is nothing short of a catastrophe, the numbers are staggering, I cannot convey in simple words the kinds of losses we are taking, if you could see the numbers I’m seeing your jaw would drop, it would take your breath away and there’s no end in sight, without government intervention, the company, the entire industry WILL collapse.

Trump supporters can only seem to see this through one lense, how to make sure Trump doesn’t get any criticism or fallout from this crisis and thats why they are downplaying it and pretending everything is just imagined and next week it’ll all blow over and be fine.

This is bigger than Trump but he is an elected official in a democratic nation and his actions prior to and during this should be questioned and picked apart as I would expect of any person in his position, it’s what he signed up for and what he and Trudeau and every other democratic leader deserves.

So stop your ****ing whining and get it through your head that this is not nothing and that health and economic wise this can and looks like will have long-standing and severe consequences.
 
Sounds like they did not learn much from their 0.5% cut earlier that did not make a difference. Good luck fighting any potential recession now... But hey, realtors & builders like Trump Org can build a lot more hotels now on the cheap.
 
Rexedgar said:
Federal Reserve slashes interest rates to zero as part of wide-ranging emergency intervention


No economist here, but help me out. Now the Fed has complied with Trump’s request. Last week 1.5 trillion dollars was released to the monetary system. The National Emergency freed up another 40-50 billion dollars. The administration is saying that people will be paid for sick leave even if the employers dont provide it. Are the presses at Engraving & Printing just running non-stop?

The Federal Reserve made an emergency interest rate cut to zero on Sunday night, a dramatic step meant to make borrowing as cheap as possible for American households and businesses as the coronavirus brings the U.S. economy to a near standstill.
Click to expand...

Finally,

Yes. Making borrowing as cheap as possible is a GREAT thing for Americans...and especially for American businesses who compete with foreign businesses. This is something that should have been done 3 years ago.

btw, the US economy is NOT at a "near standstill". Please don't make **** up. We get enough of that from the media.
 
SheWolf said:
With the interest rate so low and the cash infusions, I believe the Fed is now out of tools.
Click to expand...

As Bernanke showed with QE and the ECB with negative rates the Fed is not out of tools. This crisis can be much broader than the one we had in 2008/09. That was induced by a bubble in one industry. Here we are talking about essentially shutting down the nation's economy for some period of time.
 
Mycroft said:
Finally,

Yes. Making borrowing as cheap as possible is a GREAT thing for Americans...and especially for American businesses who compete with foreign businesses. This is something that should have been done 3 years ago.

btw, the US economy is NOT at a "near standstill". Please don't make **** up. We get enough of that from the media.
Click to expand...

No is listening to your Trumpist propaganda you birther nonsense peddler.

This is not one of your moronic masters tweets we’re talking about but a global economic and health catastrophe that is bigger than the moron you continually lick the boots of every hour of everyday.
 
Mycroft said:
Finally,

Yes. Making borrowing as cheap as possible is a GREAT thing for Americans...and especially for American businesses who compete with foreign businesses. This is something that should have been done 3 years ago.

btw, the US economy is NOT at a "near standstill". Please don't make **** up. We get enough of that from the media.
Click to expand...

When the text is bolded or in quotes it fulfills the requirement of quoting from the link.


If this was a military operation, this would be the time when the troops are ordered to “fix bayonets” because the bullets are gone..........
 
Given the timing, this rate cut might be an effort to curtail another panic sell off tomorrow morning.
 
Excellent move.

Shores up market confidence and makes money cheap so the private sector and ride out the storm.

That will help top minimize panic over 401Ks and encourage investment.

Thanks to the Fed.
 
All the tools were used by the Feds under pressure from Trump in the past to boost the economy in order to break records and inflate what was an already over-inflated market -- all so Trump could boast. But now, when the economy really needs the boost, the Feds are pretty powerless to inject it with new life by lowering rates anymore. Of course they can actually lower them below zero but that really won't offset these profound losses we're seeing now and will see more of in the future.

But negative rates are seen as a sign of economic distress, and there's little evidence that they help stimulate growth. Fed officials have indicated that they're unlikely to cut rates below zero. There are several countries that already have sub-zero interest rates.

Japan: -0.10%
Sweden: -0.30%
European Central Bank: -0.40%
Denmark: -0.70%
Switzerland: -0.80%

I don't think there's any doubt among any experts that we're in a recession and depending on how the coronavirus plays out, we may even be heading into a depression.
 
If the interest rate goes negative, I’m pulling all cash out of the bank, putting it in my safe. IRA transferred to TSP.

I’m retired, and can stay home to guard it. ( now if I can just find the key to my safe.)
 
Mycroft said:
Finally,

Yes. Making borrowing as cheap as possible is a GREAT thing for Americans...and especially for American businesses who compete with foreign businesses. This is something that should have been done 3 years ago.

btw, the US economy is NOT at a "near standstill". Please don't make **** up. We get enough of that from the media.
Click to expand...

The economy has been strong. It would be incredibly stupid to flood the system with stimulus during a long lasting economic boom. TCJA was stupid, because it used up a bunch of stimulus that wasn't needed, and created $trillion deficits AT FULL EMPLOYMENT. If the Fed had pursued ZIRP at full employment, every one of those guys would have been asking to get fired for recklessness and irresponsibility.

So you're about as wrong as you can be.

FWIW, this kind of panicked reaction by the Fed - a massive rate cut on a Sunday night - means they've got data that will prove your last point has a very short shelf life.
 
SCrider said:
Yes, you are correct. Seems like this is not going away in the near future, I think they just ****ed us over for the long haul.......
Click to expand...
Well, they do have one alternative left, never tried in the U.S. - negative rates! But my God, I don't want to think of the ramifications.
 
SCrider said:
Yes, you are correct. Seems like this is not going away in the near future, I think they just ****ed us over for the long haul.......
Click to expand...

I have been reading business news, and it sounds like Trump appointed Jerome Powell, a Trump loyalist. Then Trump encouraged him to keep interest rates low. Trump loved low interest rates and deep corporate tax cuts, because it caused the markets to soar. The bad thing, is it also created high deficits and long term low interest rates, and that's very bad when facing a possible recession and depression. Trump should have restructured the economy. Once it was rescued from the previous recession, it need to be restructured. Instead, Trump kicked the engine into overdrive and risks blowing up the whole engine. Everything I have read says another recession under these macroeconomic conditions is going to be a lot worse than the 2008 recession and financial crisis.

Trump is also thinking about firing Powell, which would also cause markets to panic. Trump needs a fall guy though.
 
SheWolf said:
I have been reading business news, and it sounds like Trump appointed Jerome Powell, a Trump loyalist. Then Trump encouraged him to keep interest rates low. Trump loved low interest rates and deep corporate tax cuts, because it caused the markets to soar. The bad thing, is it also created high deficits and long term low interest rates, and that's very bad when facing a possible recession and depression. Trump should have restructured the economy. Once it was rescued from the previous recession, it need to be restructured. Instead, Trump kicked the engine into overdrive and risks blowing up the whole engine. Everything I have read says another recession under these macroeconomic conditions is going to be a lot worse than the 2008 recession and financial crisis.

Trump is also thinking about firing Powell, which would also cause markets to panic. Trump needs a fall guy though.
Click to expand...
He doesn't have the power to fire Powell.

But constantly talking about it is certainly not generating confidence on Wall Street.
 
Erod said:
Excellent move.

Shores up market confidence and makes money cheap so the private sector and ride out the storm.

That will help top minimize panic over 401Ks and encourage investment.

Thanks to the Fed.
Click to expand...

Not really how this is going to play out, but time will show you what I mean.
 
Fed is out of tools.

The GOP hoax that the slash was necessary is obvious.

Payrolls will be meet despite lower earnings.
 
washunut said:
As Bernanke showed with QE and the ECB with negative rates the Fed is not out of tools. This crisis can be much broader than the one we had in 2008/09. That was induced by a bubble in one industry. Here we are talking about essentially shutting down the nation's economy for some period of time.
Click to expand...

Do you think having negative interest rates is a good thing? It hasn't worked well for Japan's economy
 
SheWolf said:
I have been reading business news, and it sounds like Trump appointed Jerome Powell, a Trump loyalist. Then Trump encouraged him to keep interest rates low. Trump loved low interest rates and deep corporate tax cuts, because it caused the markets to soar. The bad thing, is it also created high deficits and long term low interest rates, and that's very bad when facing a possible recession and depression. Trump should have restructured the economy. Once it was rescued from the previous recession, it need to be restructured. Instead, Trump kicked the engine into overdrive and risks blowing up the whole engine. Everything I have read says another recession under these macroeconomic conditions is going to be a lot worse than the 2008 recession and financial crisis.

Trump is also thinking about firing Powell, which would also cause markets to panic. Trump needs a fall guy though.
Click to expand...
Trump fires Powell, and the market is guaranteed to tank.
 
hang on....

Trump, Rush, Sean, Rush, Alex and a ton of people here said this was all fake.




Bunch of friggin liars.
 
HumblePi said:
All the tools were used by the Feds under pressure from Trump in the past to boost the economy in order to break records and inflate what was an already over-inflated market -- all so Trump could boast. But now, when the economy really needs the boost, the Feds are pretty powerless to inject it with new life by lowering rates anymore. Of course they can actually lower them below zero but that really won't offset these profound losses we're seeing now and will see more of in the future.

But negative rates are seen as a sign of economic distress, and there's little evidence that they help stimulate growth. Fed officials have indicated that they're unlikely to cut rates below zero. There are several countries that already have sub-zero interest rates.

Japan: -0.10%
Sweden: -0.30%
European Central Bank: -0.40%
Denmark: -0.70%
Switzerland: -0.80%

I don't think there's any doubt among any experts that we're in a recession and depending on how the coronavirus plays out, we may even be heading into a depression.
Click to expand...

From what I know about Japan's economy, you're right that negative interest rates stifle growth. That seems to be the case in Japan especially.

And here we go... Trump wants to demote his loyal Fed Chair Powell. Powell should have been raising interest rates, but constantly slashed them at Trump's encouragement.
Trump Says He Could Demote Fed Chair Powell, Risking More Market Turmoil - The New York Times
 
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