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by Tuna-Fish 311 days ago
> This means that investors are pricing companies as if though interests rates can be lowered. I don't think they can, because inflation in the US already quite high despite the 4.5% interest rates and with these tariffs upon that, it probably can't be lowered.

This is why Trump is replacing people doing the statistics with people who very publicly say that they will print what Trump wants. He really wants to cut rates, and I think he will eventually get his way.

1 comments

If employment is down though, then that would be justification for lowering the interest rates. I think it's more a matter of maintaining appearances than something strategic to make the, by Trump desired, low interest rate economy possible.

Even though he wants lower rates, rather than saying 'the Fed is prioritizing price stability over employment and that's wrong-- we can't waste American lives, they need to have jobs' he's denying the numbers despite that they could in principle allow him to do something he wants.

Maybe other things are signs of knowing these problems, maybe this demand for investments from Japan and the EU are motivated by concerns that stock market and to some degree commercial housing valuations are unreasonable, but it's not certain that Trump or anybody else is fully aware. This isn't complicated stuff, and I've even seen newspapers detail ideas like this, maybe toned down a bit, but it's hard to know who understands what.