Fed Funds rate cut insufficient

10/3/25:

Armstrong Economics

New Hires Fell to 16-Year Low in September

Comment:

Which is it?  Recession or boom?  If it is a boom, the interest rates can be justified.  If a bust, then the Fed should lower rates. You don't need to wait for data from the government. The market is telling you this information on its daily trading in the bond markets.

9/28/25:

Support for the Milton Friedman point of view that the Fed exacerbated the Great Depression. If the Fed isn't more careful, history can repeat itself. The saying goes: History repeats, the first time as tragedy, and the second time as farce.

9/26/25:

Told ya. The link points to confirmation of this post. Lower the interest rates (fed funds rate we're talking about here) so that more houses can be sold. In other words, the "independent Fed" is killing the housing industry. Why?

9/21/25:

A look at the yield curve reveals an inverted status. That, by definition, is tight money. The Fed is in inflation fighting mode. Without a further study, methinks it has been the case for the last THREE years.

If so, that almost GUARANTEES a recession. So, let's get this straight. The Fed denied there was any inflation, then the inflation reared its ugly head, and the FED went into panic mode. They raised the Fed funds rate to over 5% and it has been close to that for nearly 3 years. They'll beat inflation this way, but they'll do it at the cost of the whole financial system if they aren't careful. Ah, and it that happens... who do you think gets the blame? Not the "independent" Fed, no sirree bobby.

9/20/25:

Trump is on record for wanting rate cuts now. He is pushing aggressively for them, but is meeting resistance from the usual suspects. The usual suspects say Fed independence! Fed independence! But Fed independence is a myth. It also masks accountability. True accountability occurs at the ballot box. In this case, the left wants a crash in the economy and a recession so that they can have an issue for the next election.

Cut the rates, or do something to make that happen. That means GOP you people. If the GOP WON'T do it, there WILL be consequences. The consequences will be dire for the cause of freedom. Just look at what's happening. The left wants to ratify political violence. If they win, they'll get that, and a whole lot of other bad stuff.

Cut the rates NOW. It may be too late to avoid recession, but it could limit the damage.

9/18/25:

As Jim Rickards opined, the Federal Reserve isn't really supplying any stimulus with this rate cut.  The open markets are leading the way, and the Fed is just following.  So this paltry rate cut of 25 basis points is not going to help much, if at all.

Rickards also said, be careful what you wish for, as lower rates already indicate RECESSION.  Indeed, if the market rates already indicate recession, it follows that the Fed funds rate SHOULD be cut much more aggressively.

The Federal Reserve is repeating the history that Milton Friedman said was the real cause of the Great Depression.  Friedman blamed it on faulty Fed policy, not the stock market crash.

Also Rickards points out the raison d'être of the higher Fed funds rate--that the economy is actually overheated.  But clearly, it is NOT.  So, I ask this question:  Could the Federal Reserve be sabotaging the economy for political reasons?  Is this another way of trying to destroy Trump politically?  For if the economy tanks, the Democrats are sure to try to exploit it.

If Trump cannot get the Fed to lower rates much more aggressively than this, then he should at least get out in front of it.  I think he is doing so with his attempt to influence Fed policy.  It was mentioned elsewhere ( sorry no link ) that the Fed's so-called "independence" is a myth anyway.  This is an attempt to freeze Trump out of any meaningful action.   I think this is economic sabotage.