Skip to main content

The Rate Cut Dilemma: A Panic Response or Strategic Move?


Unemployment was the main reason for the FED rate cut of 50bps. This cannot be seen in light of the increase in costs of household items from gas to groceries and the timing of the elections in mind. The American Dream which the Americans had always cherished to call themselves saw this rate cut not less than any panic by insiders inside the Democrat party itself. 

How will the Americans as a whole see this rate cut?
We have seen the unemployment rate slipping away, which has almost halved in this administration. The reason is that the administration has been concentrating on its political agenda more than anything else, at least the welfare of its own population. The administration has been extremely slow in reacting to any of its urgent calls despite the urgency of it in the Middle East peace and reconciliation process since October 7th.

Most of the urgent and demanding issues have been manipulated or stalled from foreign to domestic issues and the economy is one of them also. The administration could have resolved or been closer to resolving most of the issues the majority of Americans had been focusing on. Instead, the administration took to the path of vengeance and revenge on its Republican opponents and that is the reason for this panic.

The administration could have eased some of its financial strains but made it easy by throwing the blame on the previous Trump government and has since come up with more left policies with regards to administration and governing adding to the already burden of the economy on average to below average Americans.

From excise to CGT (capital gains tax), and increasing housing costs the administration has not been focusing on the increased burden on Gen Z and the citizens over 65 in the country. The rate cut has not changed anything, instead, it has put more money in the hands of the wealthy to filthy rich Americans in the country and also those living abroad. The rate cut has only changed hands from the bankers to individuals.




 

Comments

Popular posts from this blog

Trump: ‘Letters to Trump’

Well what has the title do to write a post on this topic? This is not a book review, but in case you’re interested you can buy it from book stores everywhere, Amazon.com , Hannity.com . The post is only to highlight how Trump is in the moment desperate to win in the 2024 elections. A reason why he has come with a book not about elections, his achievements, business and not even his first fours 2016-2020 as the United States President. But, for those or anyone interested in reading this book it’s available in the links given above so you can buy it there. The title of the book is the title and the topic of this post. Good luck! Get your copy first before it’s all sold out.

The Rust Shooting Incident: Misconceptions and Facts

The wrongful confinement of Alec Baldwin for three years in relation to the "Rust" shooting incident starkly illustrates the issues plaguing the U.S. judicial system today. Baldwin's case, which stemmed from an on-set accident resulting in the tragic death of cinematographer Halyna Hutchins, highlighted significant flaws in the legal process. Firstly, the prolonged detention of Baldwin, despite the absence of substantial evidence proving criminal intent, underscores the tendency of the judicial system to prioritize punitive measures over a fair assessment of individual circumstances. Baldwin's role as an actor and producer should have been carefully scrutinized to distinguish between negligence and criminal liability. However, his extended confinement suggests a rush to judgment and a failure to uphold the presumption of innocence. Secondly, this case reveals systemic inefficiencies and bureaucratic delays within the court system. A three-year detention period before ...

Impact of Inflation on Limited Trading Week: A Brief Overview

Inflation data plays a crucial role in the economy as it measures the rate at which the general level of prices for goods and services is rising, and subsequently, how the purchasing power of currency is falling. Central banks, policymakers, and investors closely monitor inflation rates to make informed decisions and maintain economic stability. A short trading week usually occurs when there are significant holidays or events that cause financial markets to close early or operate with limited hours. Such events may include national holidays, important political or economic announcements, or natural disasters that disrupt normal market operations. In a short trading week, investors and traders may experience increased volatility in the markets due to reduced liquidity and lower trading volumes. This can lead to sudden price fluctuations as traders attempt to capitalize on limited opportunities. Moreover, economic data releases, such as inflation figures, can have a more significant impa...