Lowering interest rates is a financial tool for stimulating entrepreneurial activity. However, this tool usually works very poorly (I'll explain in more detail below). 🙋 That is, it's a last resort, used when the economy has already accumulated enormous problems. Unemployment is high, no one wants to start new production... At this point, the temptation arises to offer cheap, practically free loans. This gives a chance to losers (bad entrepreneurs who have long wanted to start their own business but were afraid, realizing they lack the necessary skills). And if the loan is practically free, then they can overcome their fear and take a risk... But can losers create a truly strong economy? This is precisely why interest rate cuts by the Federal Reserve usually work so poorly. Because they are applied to an already troubled economy! In the US, in my opinion, there is currently no reason to lower the Fed rate (other than the problem of servicing the enormous national debt).  Unemployment in the country is low, oil prices are high, and there are no resources to create new industries... The only logical reason for low interest rates now, in my opinion, is the illusory hope of devaluing the national debt through high inflation. Perhaps this is exactly what Donald Trump wants. But this is an incredibly dangerous gamble... In my opinion, it could lead to a complete abandonment of the US dollar both in the US and around the world. 🤷
Lowering interest rates is a financial tool for stimulating entrepreneurial activity. However, this tool usually works very poorly (I'll explain in more detail below). 🙋 That is, it's a last resort, used when the economy has already accumulated enormous problems. Unemployment is high, no one wants to start new production... At this point, the temptation arises to offer cheap, practically free loans. This gives a chance to losers (bad entrepreneurs who have long wanted to start their own business but were afraid, realizing they lack the necessary skills). And if the loan is practically free, then they can overcome their fear and take a risk... But can losers create a truly strong economy? This is precisely why interest rate cuts by the Federal Reserve usually work so poorly. Because they are applied to an already troubled economy! In the US, in my opinion, there is currently no reason to lower the Fed rate (other than the problem of servicing the enormous national debt).  Unemployment in the country is low, oil prices are high, and there are no resources to create new industries... The only logical reason for low interest rates now, in my opinion, is the illusory hope of devaluing the national debt through high inflation. Perhaps this is exactly what Donald Trump wants. But this is an incredibly dangerous gamble... In my opinion, it could lead to a complete abandonment of the US dollar both in the US and around the world. 🤷

Lowering interest rates is a financial tool for stimulating entrepreneurial activity. However, this tool usually works very poorly (I'll explain in more detail below). 🙋 That is, it's a last resort, used when the economy has already accumulated enormous problems. Unemployment is high, no one wants to start new production... At this point, the temptation arises to offer cheap, practically free loans. This gives a chance to losers (bad entrepreneurs who have long wanted to start their own business but were afraid, realizing they lack the necessary skills). And if the loan is practically free, then they can overcome their fear and take a risk... But can losers create a truly strong economy? This is precisely why interest rate cuts by the Federal Reserve usually work so poorly. Because they are applied to an already troubled economy! In the US, in my opinion, there is currently no reason to lower the Fed rate (other than the problem of servicing the enormous national debt).  Unemployment in the country is low, oil prices are high, and there are no resources to create new industries... The only logical reason for low interest rates now, in my opinion, is the illusory hope of devaluing the national debt through high inflation. Perhaps this is exactly what Donald Trump wants. But this is an incredibly dangerous gamble... In my opinion, it could lead to a complete abandonment of the US dollar both in the US and around the world. 🤷

Lowering interest rates is a financial tool for stimulating entrepreneurial activity. However, this tool usually works very poorly (I'll explain in more detail below). 🙋 That is, it's a last resort, used when the economy has already accumulated enormous problems. Unemployment is high, no one wants to start new production... At this point, the temptation arises to offer cheap, practically free loans. This gives a chance to losers (bad entrepreneurs who have long wanted to start their own business but were afraid, realizing they lack the necessary skills). And if the loan is practically free, then they can overcome their fear and take a risk... But can losers create a truly strong economy? This is precisely why interest rate cuts by the Federal Reserve usually work so poorly. Because they are applied to an already troubled economy! In the US, in my opinion, there is currently no reason to lower the Fed rate (other than the problem of servicing the enormous national debt).  Unemployment in the country is low, oil prices are high, and there are no resources to create new industries... The only logical reason for low interest rates now, in my opinion, is the illusory hope of devaluing the national debt through high inflation. Perhaps this is exactly what Donald Trump wants. But this is an incredibly dangerous gamble... In my opinion, it could lead to a complete abandonment of the US dollar both in the US and around the world. 🤷