I kinda don’t understand what Trump wants to do with the Fed. Lower rates obviously but just seems like high risk for marginally higher growth.
I kinda don’t understand what Trump wants to do with the Fed. Lower rates obviously but just seems like high risk for marginally higher growth.
1) He wants economy to go up 2) if economy goes down, he wants someone to blame for not letting economy go up
People will sacrifice a lot to be able to move up the property ladder, or renovate. Or so they may be hoping.
Trump has bought a hundred million dollars in bonds over the last six months. If interest rates substantially decline, the selling price of all those bonds will go up.
yup www.reuters.com/business/fin...
Probably better to ask Pulte Homes what their theory is
Probably better to ask Pulte Homes what their theory is
he is not master of his own destiny and that scares him due to the late 80s and early 90s
note I think his health also impacts this **unrelated** thing for anxiety in one area causes anxiety in other areas in most humans
I hope their gerrymander runs out of juice too
I highly doubt he understands economics enough to have an idea, I think it's just the usual stew of dementia, narcissism, and wanting another plaything in this case Fed rates
They've stood up to him, they haven't shown him respect, they need to be put in their place. It's pretty simple
He doesn’t deserve respect. He deserves contempt and scorn. I hope someone finally gives it to him
Trump's a real estate developer, I think he is naturally comfortable with low rates and uncomfortable with high rates
He thinks it will juice the real estate market. He’s not thinking so far as inflation. He thinks home owner voters will like the lower rates. His is real estate brain, tv brain, or facism brain. Nothing else up there.
Have heard that Trump world legit thinks that all will be well if rates are lower.
80s brain and real estate mogul brain strike again
Yup, there's a reason I focused on this so much in my summation Friday
Famous Minsky paper subject Donald Trump.
Noncommittally, id like to be more sure that this is actually wrong. What do you think? "All be well" is a high bar, but if inflation was COVID and some claim ZIRP 2008-19 was fine.. and tariffs are a one-off.. not obvious this wouldn't cynically boost public sentiment?
My ex boyfriend believes this too & I keep trying to explain it would just fuel stagflation with Trump’s tariffs.
Is it as dumb as trying to offset higher input prices from tariffs with lower debt service costs?
I think it’s vibes
this is Worse, right? like capital W Worse.
my understanding is that if you're a manhattan real estate developer then interest rates are basically the entire economy and trump hasn't learned a new thing since the 80s
lots of things have changed since then, like trump's level of cognitive function
He wants to be able to refinance the national debt at lower rates. His primary concern isn't economic growth/mortgage rates/etc.
He hates the very idea of a technocratic body that doesn’t just do what he says and he has no leverage over. It’s not rational - it’s “these guys are standing in my way so they are my enemy.”
It’s his basic view of the presidency, which he’s stated quite clearly. "Then I have an Article II, where I have the right to do whatever I want as president.” He views winning an election as placing him outside the rule of law and subject to no other authority. A view that SCOTUS is endorsing.
Several things: 1. He is a RE developer and therefore has a bias towards lower interest rates. 2. He thinks the Fed *sets* rates—it does set a short term rate and that rate is quite influential, not long-term rates are independent and set by the market.
3. He wants an easing cycle to help paper over all the damage his policies are doing to the economy. 4. The stock market will like it and then he can say “See, things are great. 5. They need to refinance US debt and lower rates will make that cheaper. 6. He thinks he is in charge of everything
Trump the modern monetary theorist
Trump wants to set the rates, and doesn't want marginally lower rates. And also, he's dumber than a box of rocks, so none of his actions have any consistency or anything approaching rational decision-making
He told us during the campaign. He wants lower interest rates, and lower inflation. We could have them both, simultaneosly, except for You Know Who.
He doesn't understand it. He does not understand any of it. He likes to troll, act important, and bully people into "giving" him gold and cash. He probably asks one of his incompetent advisors to ChatGPT it for him.
the fed also has regulatory duties so there’s probably some corruption angle
maybe money laundering, evading sanctions www.federalreserve.gov/supervisionr...
Trump is a pure destructive force guided by the passions and grievances of an uninhibited, wounded child. When you say "wants to do" you are talking about the enablers who surround him: the corrupt, the fanatics, the crackpots, the greedy, the fascists.
Two possibilities: 1) He doesn't know how the Fed works. 2) He doesn't care how the Fed works.
Lower rates could give just enough of a short-term bounce to let them hold the House in 26 election.
He doesn't understand how any of it works.
People will love cheaper mortgages
Corporations that buy up houses love lower rates. This happened in Trump’s first term. The 2017 tax cuts gave the best rates to real estate investors. Corporate real estate investors bought up a lot of housing to use as rentals, outbidding families. This led to our housing shortage,
resulting in higher housing & rental costs. Places like here in Florida they use a lot of these houses as vacation rentals so they sit empty most of the year. Those of us long term residents can no longer afford housing.
He wants to reduce the rate by 1400 - 1500%.