Thursday, September 19, 2019
Fed Cutting Interest Rates Again
The Fed has just cut interest rates again, the 2nd time since July. Trump has also began encouraging the Fed to lower interest rates down to almost nothing. Typically if interest rates were to go too much lower it would be a really bad sign for the economy. They also have pumped just over $200 billion into the market. This possibly could be due to the growing worry of an upcoming recession as well as the upcoming tariffs becoming active. Actions like these are expansionary monetary policies in attempt to get the market stimulated and have consumers spend. Due to the growing number of tariffs placed on the global market the Fed may be very worried about this upcoming holiday season. Which is the where companies sell by far the greatest amount of product.
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Doesn't look like there will be a governmental surplus any time soon.I am wondering what the best industry would be to stimulate growth, probably not consumable goods.
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