Fed slashes interest
rates by the biggest amount in 16 YEARS
- here's what it means for you
Daily Mail (UK),
by
Tilly Armstrong
Original Article
Posted By: Imright,
9/18/2024 2:55:45 PM
The Federal Reserve cut interest rates Wednesday by the biggest amount since 2008.
Stock markets initally soared on the news - which is seen as a boost for the economy.
By slashing interest rates, the Fed has made borrowing money less expensive, taking some of the pressure off consumers' wallets. Experts say it will be a big boost to 401(K) balances too.
The cut of 0.5 percentage points is be biggest in 16 years. The Fed was forced to last take the drastic action in the Great Recession that began in 2008.
The Fed reacted to worse-than-expected economic data in the past month that casused stock markets to go red in August.
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Reply 1 - Posted by:
Dodge Boy 9/18/2024 3:01:41 PM (No. 1798041)
And wouldn't you know it, a pivotal election is coming up in just six weeks. Way to go, Powell.
81 people like this.
Reply 2 - Posted by:
DVC 9/18/2024 3:15:13 PM (No. 1798049)
A shot of methamphetamine for the economy to help Dems.
74 people like this.
Reply 3 - Posted by:
Jethro bo 9/18/2024 3:21:34 PM (No. 1798053)
If, if if a Refublican was in office, Democrats would be yelling election interference, a threat to democracy and would have sent the FB I and Dept of Just-Us to arrest to Fed Reserve board. And of course would call out the Blackrock assassination team to polish off the Refublican in office.
64 people like this.
Reply 4 - Posted by:
Safari Man 9/18/2024 3:30:14 PM (No. 1798056)
Political move. Rates need to be higher. We still have inflation too high.
57 people like this.
Reply 5 - Posted by:
jeffkinnh 9/18/2024 3:48:48 PM (No. 1798066)
If the economy is just fine, as all the dems and propaganda media say, WHY would the Fed need to take such aggressive action? There must be a problem that needs to be addressed, eh? Then the question becomes, WHERE did the problem come from? Surely not from Trump who has been out of office for years. Perhaps the problem comes from the massive deficit spending by Biden/Harris? Before HARRIS dragged the Inflation Reduction Act across the finish line, they were told that it would actually increase inflation. It has. What NOT a surprise. The IRA was also supposed to decrease the deficit (It has not) and improve domestic energy production (it didn't and that that is why gas prices remain high).
So Harris got her bill passed and IT is a significant cause of the economic problems we face. WHY should she be given another 4 years to mess things up even more?
54 people like this.
Reply 6 - Posted by:
envirodude 9/18/2024 3:50:42 PM (No. 1798067)
election interference! Who cares about inflation!
34 people like this.
Reply 7 - Posted by:
downnout 9/18/2024 3:53:45 PM (No. 1798068)
I think Chairman Powell wants to keep his job.
27 people like this.
Reply 8 - Posted by:
daisey 9/18/2024 4:30:15 PM (No. 1798081)
Only did this to help Kamala slither into the White House.
39 people like this.
Reply 9 - Posted by:
marbles 9/18/2024 4:39:38 PM (No. 1798085)
My part D for next year has been lowered by 50 %. First time ever it has gone down. We all know why.
18 people like this.
Reply 10 - Posted by:
red1066 9/18/2024 4:46:32 PM (No. 1798087)
It means inflation will increase.
34 people like this.
Reply 11 - Posted by:
Califedup 9/18/2024 4:52:54 PM (No. 1798093)
Watch, in mere weeks before the election, inflation will skyrocket and this will backfire big time in the communist death democrats faces. First thing President Trump should do is fire the entire Federal Reserve Board.
36 people like this.
Reply 12 - Posted by:
Venturer 9/18/2024 4:56:28 PM (No. 1798098)
gas prices are down a bit and now interest rates.
THERE MUST BE AN ELECTION COMING UP.
40 people like this.
Reply 13 - Posted by:
skacmar 9/18/2024 6:03:16 PM (No. 1798126)
How will Kamala Harris respond if asked about the Fed .5% interest rate reduction to help the economy? What kind of rehearsed incoherent explanation will spew from her mouth to confuse everyone to show that she has no idea what she is talking about?
28 people like this.
Reply 14 - Posted by:
snowoutlaw 9/18/2024 8:46:06 PM (No. 1798218)
I fail to see how it helps savers and 401k balances.
20 people like this.
Reply 15 - Posted by:
JimBob 9/18/2024 9:15:55 PM (No. 1798230)
It seems to me that they have to time this just right, and get the Lamestreams to help.
Lowering the interest rate will make loans less expensive.
House sales and car sales should go up, and the Lamestreams will need to trumpet this 'improvement'.
But inflation will also go up, right behind the increased sales, but there is a lag on inflation Reporting.
Can the Fed time this so that the sales go up BEFORE the election, but the NEWS of the Increase in Inflation comes AFTER the election? (It only has to be One Day After, to be a success.)
They can probably do this, especially with the help of the Lamestreams, but........
Never forget the One True Thing that Zero said:
"Never Underestimate Joe's Ability to [Eff] Things Up."
11 people like this.
Reply 16 - Posted by:
watashiyo 9/18/2024 9:42:04 PM (No. 1798239)
Watch, it'll go up again in no time.
9 people like this.
Reply 17 - Posted by:
MickTurn 9/19/2024 12:46:15 AM (No. 1798289)
Just in time for the election. The FED is in the Marxist Tank for sure!
19 people like this.
Reply 18 - Posted by:
Krause 9/19/2024 5:07:29 AM (No. 1798344)
Powell, knowing that Harris and Walz know absolutely nothing about economics and inflation, gives them a leg up.
13 people like this.
Reply 19 - Posted by:
Strike3 9/19/2024 8:15:40 AM (No. 1798436)
The feds caused the problem in 2021 with massive overspending and giveaways with zero return. Homes and cars may be a little cheaper to buy now but most people do not have the money to make the inflated monthly payments and the credit card class has maxed-out balances. Manipulation at the federal level doesn't fix anything. Even those who can pay cash for big-ticket items have been holding back due to the unknown insanity of the Biden administration. The most effective fix will be to get the democrats out of town, far out of town.
12 people like this.
Reply 20 - Posted by:
franq 9/19/2024 8:46:02 AM (No. 1798464)
I'm no economic expert, #14, but I don't believe it helps savers. Lower "ambient" interest rates mean lower rate of return on savings accounts. But it could help 401k accounts vested in stocks. When money doesn't earn much in the bank, investors put it in the stock market, driving up prices. So 401k accounts will show paper gains.
4 people like this.
Reply 21 - Posted by:
stablemoney 9/19/2024 8:54:20 AM (No. 1798471)
Interest rates should be set by the market, not the Fed. Fed financing government overspending with interest rate manipulations is what is causing the problems. This interest rate reduction punishes savers, those without the wherewithal to manage their financial affairs. The rate reduction was foregone, and co-ordinated with other members of the G7, that had already reduced their rates, to help those economies, which are suffering under socialist policies. With government deficits (dissaving, i.e. consumption) more than private saving (investment), the economy will continue to have lower productivity, due to no net new investment in capital. Lower productivity means a lowering of the standard of living, which is declining 2% or more a year. The Biden administration is putting out such lies on economic statistics that no one can say precisely what is happening, other than you can believe you own eyes: things are getting worse.
8 people like this.
Reply 22 - Posted by:
Zigrid 9/19/2024 9:02:17 AM (No. 1798479)
Here WE go folks...another election interference by a government agency....not a surprise...the washington elites are in a panic and are doing everything to prop up camalala....to no avail ...everytime she goes out to speak her word salad...she looks more foolish...I guess obama is losing his grip on the Oval Office...and his days are numbered....
6 people like this.
Reply 23 - Posted by:
Ashley Brenton 9/19/2024 9:25:34 AM (No. 1798504)
Election interference.
6 people like this.
Reply 24 - Posted by:
Lawsy0 9/19/2024 9:36:32 AM (No. 1798519)
The feds are not totally unaware of a higher authority! Every four years they have a sort of "come-to-Jesus" meeting about our 46% taxation rate.
1 person likes this.
Reply 25 - Posted by:
rikkitikki 9/19/2024 9:58:34 AM (No. 1798533)
It is my understanding that in most such cycles, inflation persists until the Fed rate is raised above the rate of inflation.
Since the Fed just did the opposite (for motives that are questionable, at best), it will only make inflation worse.
Accordingly, we can all expect prices of consumer goods, housing, etc to keep ratcheting up.
Democrats have chosen, yet again, to ignore economic realities...and we all pay the price.
7 people like this.
Reply 26 - Posted by:
mc squared 9/19/2024 11:15:18 AM (No. 1798576)
And gas is just under $3 here in FL. Woo Hoo - Harris for POTUS.
0 people like this.
Reply 27 - Posted by:
Thos Weatherby 9/19/2024 12:27:25 PM (No. 1798640)
This just brings the economy down faster. Doesn't help the dem's. Stocks for an adjustment very soon. Hope you all have a little Gold and Silver stashed away.
0 people like this.
Reply 28 - Posted by:
PrayerWarrior 9/19/2024 1:06:00 PM (No. 1798671)
So Powell couldn't wait until after the election to lower the interest rates. How convenient! At our local bank on Monday before Wednesday's Fed meeting, the CD rate for 6 months was 4.75% down from 5% a couple of months ago. This lower interest rate will be hard on those who are trying to save, so for those people, you are out of luck!
2 people like this.
Reply 29 - Posted by:
thefield 9/19/2024 1:47:30 PM (No. 1798701)
a half point largest in years? This economy reporter is not very good at research.
1 person likes this.
Reply 30 - Posted by:
danu 9/19/2024 4:54:16 PM (No. 1798802)
Ladies and Gentlemen! the Venn diagrams have been consulted. be grateful.
you will be significantly unburdened by the past and present significance of what it
means to be burdened significantly by burdensome burdens which remain significant
unless and until i wave my hand to... turn the page... on these burdens and acknowledge
their significance on the venn diagrams of the burdens of elections of significance like mine. yo!
1 person likes this.
Reply 31 - Posted by:
rikkitikki 9/19/2024 5:05:34 PM (No. 1798808)
to #26:
Please specify exactly what Harris/Biden did to lower the price of gasoline....?
0 people like this.
Reply 32 - Posted by:
TurtleDove 9/19/2024 7:14:57 PM (No. 1798867)
So tell me again how the Fed is "independent". (I REALLY need a sarcasm font!)🙄🙄🙄🙄🙄
0 people like this.
Reply 33 - Posted by:
bighambone 9/19/2024 10:28:03 PM (No. 1798944)
Anything that Biden and his crew does between now and the November election will be highly political and will be done to boost the leftist and progressive Democrats chances of winning the election. Especially so will be the suspected upcoming October Surprise that is sure to come out of the Biden crew during October, anyone have any ideas on that?
0 people like this.
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