Established in 2006 as a Community of Reality

Welcome to the Neno's Place!

Neno's Place Established in 2006 as a Community of Reality


Neno

I can be reached by phone or text 8am-7pm cst 972-768-9772 or, once joining the board I can be reached by a (PM) Private Message.

Join the forum, it's quick and easy

Established in 2006 as a Community of Reality

Welcome to the Neno's Place!

Neno's Place Established in 2006 as a Community of Reality


Neno

I can be reached by phone or text 8am-7pm cst 972-768-9772 or, once joining the board I can be reached by a (PM) Private Message.

Established in 2006 as a Community of Reality

Would you like to react to this message? Create an account in a few clicks or log in to continue.
Established in 2006 as a Community of Reality

Many Topics Including The Oldest Dinar Community. Copyright © 2006-2020


    Why does Trump attack US interest rates?

    Rocky
    Rocky
    Admin Assist
    Admin Assist


    Posts : 268961
    Join date : 2012-12-21

    Why does Trump attack US interest rates? Empty Why does Trump attack US interest rates?

    Post by Rocky Sun 26 Aug 2018, 3:11 am

    Why does Trump attack US interest rates?

    Why does Trump attack US interest rates? 640








     26 August 2018 08:07 p
    Editing - سالي إسماعيل:
    Mubasher: The modern macro-economy puts great value on the idea of ​​the independence of the central bank, which sits above the political bickering, where the governors of these banks are supposed to use interest rates to manage the economy between inflation and stagnation.
    According to an analysis published by the agency "Bloomberg View" that President Donald Trumphas little understanding of the modern macroeconomic, as he expressed his regret more than onceabout the Chairman of the Federal Reserve, "Jerome Powell," raising interest rates as the performance of the US economy is accelerating.
    The question is why Trump is concerned about interest rates. Although Powell has approved five increases, interest rates remain low by historical standards.
    Why does Trump attack US interest rates? 2Q==
    Rocky
    Rocky
    Admin Assist
    Admin Assist


    Posts : 268961
    Join date : 2012-12-21

    Why does Trump attack US interest rates? Empty Re: Why does Trump attack US interest rates?

    Post by Rocky Sun 26 Aug 2018, 3:11 am

    One reason why Trump is concerned is his belief that low interest rates will help him win his trade war.
    The reason for this is probably Trump's desire for the dollar to be weaker. When interest rates are low, the theory suggests that funds tend to exit the US for places offering better rates of return.
    Excess capital flows demand the sale of the US currency, pushing the dollar down and thus making US exports cheaper and imports more expensive.
    Another reason for Trump's preference for low interest rates is the fight against economic damage caused by a trade war.
    US manufacturers are expected to suffer from steel tariffs and other inputs, while US farmers will be negatively affected by reprisals from China and other countries angry at Trump's aggressive policies.
    This results in a slowdown in the economy or a recession that Trump will be the party to blame for.
    Of course, the president wants low interest rates to boost the economy and help him weather the storm.
    But another reason is that even higher interest rates, even if moderate, could reveal weaknesses in the US economy and reduce current economic expansion.
    Historically, it has been a long time since the United States suffered from recession, but from the perspective of some theories, long economic expansions tend to cause the accumulation of bad debts in the system which ultimately is not paid, causing the country to return to recession.
    Research shows that when the differences between the more risky debt returns and US Treasuries narrow, the slowdown is often - but not always - occurring within two years.
    As of this year, these differences appear to be somewhat weak.
    Why does Trump attack US interest rates? Z
    Naturally, the question is, where can the bad debt accumulate ?, and during a recent debate, an earlier analysis by the agency suggested that the answer might lie in the balance sheets of US companies.
    Although financial firms are still less indebted than they were before the financial crisis, non-financial company debt reached record highs as a percentage of GDP.
    %D9%85%D8%B9%D8%AF%D9%84%D8%A7%D8%AA-%D8%A7%D9%84%D9%81%D8%A7%D8%A6%D8%AF%D8%A9-%D8%A7%D9%84%D8%A3%D9%85%D8%B1%D9%8A%D9%83%D9%8A%D8%A9-

      Current date/time is Fri 26 Apr 2024, 1:22 pm