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Showing posts with the label Rate Cut

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. Th...