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Money and Finances
Reply to "Armchair economists, can you cut rate with rising prices?"
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[quote=Anonymous][quote=Anonymous]The jobs data today points to what we all know is coming. It’s just there’s a lag effect. For example, a guy who does tree maintenance in my neighborhood has complained that his business has been affected by the Fed jobs data cuts. The job cuts have effects on other industries like restaurants, salons, services. Beyond that fewer international travelers are coming here this summer. Those losses will be reflected in the fall. [b]Trump wants rates to be cut because it will act as a short term stimulus. People can borrow more cheaply and it will give a boost to the economy in the short term[/b]. He wants things to look better ahead of the midterms. [/quote] This effect may not happen because lenders know what's ahead and I doubt the next rate cut will provide the effects they usually do. I could be wrong. [/quote]
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