RE: Federal interest rate cut.
Okay so the graph shows that a cut in interest rates precipitates a recession. While that's true, I think we're still in uncertain waters because the US economy is unlike it's ever been. The 8 years of near zero interest rates was unprecedented and shifted so much of the capital into assets rather than real production. So I don't know if the typical rules about borrowing and reinvestment will apply.
Do the high priests of the economy think a recession is coming? They're saying they don't think so, but they also could be lying. The rate hikes were intended to slow down inflation, which they largely did. But prices are still high compared to wages. What will people do with lower interest rates? Is it enough to boost general consumption? Or just enough for financial types to move money away from production and into financial instruments. I don't know.
Elon, did you make that joke to people who you pay a salary to? And they're the only one's who laughed? Looking into this.
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