Welcome to DU! The truly grassroots left-of-center political community where regular people, not algorithms, drive the discussions and set the standards. Join the community: Create a free account Support DU (and get rid of ads!): Become a Star Member Latest Breaking News Editorials & Other Articles General Discussion The DU Lounge All Forums Issue Forums Culture Forums Alliance Forums Region Forums Support Forums Help & Search

General Discussion

Fiendish Thingy

(18,801 posts)

7. Low rates trigger High inflation, which lowers demand

Reply to unblock (Reply #6)

Mon Dec 23, 2024, 10:18 AM

Monday

Lower demand causes increased unemployment and lower GDP, which is the benchmark for a recession.

That’s why Powell and the Fed have been masterful in threading the needle on rates, so that the benefits of Bidenomics could be maximized for as long as possible.

Edit history

Please sign in to view edit histories.

Recommendations

0 members have recommended this reply (displayed in chronological order):

12 replies

= new reply since forum marked as read

Highlight:

My Prediction On The Fed & Interest Rates [View all] gab13by13 Monday OP

But it isn't inflation... Think. Again. Monday #1

Powell announced last week there will be few, if any, rate cuts in 2025 Fiendish Thingy Monday #2

President Musk will make Powell an offer he can't refuse. gab13by13 Monday #4

cutting rates would be unlikely to cause a recession, but it certainly would reignite inflation, especially with tariffs unblock Monday #6

Low rates trigger High inflation, which lowers demand Fiendish Thingy Monday #7

well, it gets a little complicated.... unblock Monday #11

I think Powell knows full well that Trump Johonny Monday #8

I think the OPs analysis is pretty good except they won't be able to fire JohnSJ Monday #3

his term are chair expires may 2026. if donnie isn't happy with what he does in 2025, he can just wait until then. unblock Monday #5

Am I wrong or does the Federal Open Market Committee vote on these rate changes? House of Roberts Monday #9

Part of the troubles are with UpInArms Monday #10

My financial advisors think Trump is mostly talk and no action. yardwork Monday #12