By Greg Maresca ——Bio and Archives--September 27, 2024

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It was one of the most anticipated announcements of Joe Biden’s presidency that was nearly on par with him dropping out of the presidential race and fading to irrelevance.

For the first time since 2020, the Federal Reserve cut interest rates by half a percentage point making the range between 4.75% and 5% with anticipation of more to come.

“The U.S. economy is basically fine,” claimed the chairman of the Federal Reserve, Jerome Powell, who made the cut regardless and seemed unconvinced about anything else. To no surprise, the stock market approved following up with record highs.

When deciding on rates, The Fed has always been a reactionary institution that relies on historical data and models like the Phillips curve that was debunked two generations ago. Cutting rates will grow the money supply and bring some relief from higher interest rates. The Fed is putting pressure on inflation to bring down interest rates as the way to manage our exploding deficits.

The rate........

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