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Iowa | Couple things to think about:
There are more debtors than savers. IF the election is a factor, there are far more people that would benefit from a decrease than a 5% cd rate. The debtors as a whole are the younger ones that drive the economy.
Biden’s proposal is for an 7.3 trillion budget - this won’t happen, however if the government is hell bent on adding 1-2 trillion in debt/year rates cannot stay at current levels or government will be insolvent in a couple years. Fed has already stated that the government deficit spending makes inflation fight worse, do they have the guts to break the government?
If you look at the 1970’s inflation run they raised rates, stopped inflation, then pulled rates back, inflation increased, then they really got nasty and went to the 17+% that so many people remember. Are we just in the first dip?
Fed still claims they’re gonna cut 3x, it’ll be interesting to see what happens. | |
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The main reason interest rates will not change until after Nov
