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US Federal Reserve just slashed interest rates to 0%
- Thread starter Deleted member 431
- Start date
Trump's a business man. The fiscal quarter is ending in 2 weeks. Business men are incapable of thinking in ways outside of quarters.
I actually have some emergency cash in a savings account. Not sure what to do now, or when the rates go negative.
I didn't even know negative interest rates was a thing.
I didn't even know negative interest rates was a thing.
What happens to money in bank accounts if interest rates go negative? I have no idea how that even works
We can pass a stimulus bill which we probably should have done before we even entertained this.
This is what I need to know!
We are likely in a recession currently.
Again, the Fed makes their own decisions. They are not part of the Trump admin.
Technically, you're correct. But the current Fed does everything it can to make Trump happy. Like this idiotic move.
But you see it's not actually physical money so you argument blah, blah, blah derp derp
Yeah, I'm really afraid that is going to happen. It's bad enough banks try to get people with all kinds of charges, fees, and minimum, but if we go negative the average person is going to be losing money just having it sit in the bank. Might as well buy your own safe at home and put money in there so it only loses to inflation and not both inflation and negative interest rates.
The only ones who really benefit are people who loan a lot of money, so really a lot of rich folks and companies.
I thought when interest rates reach zero or negative the banks basically refuse to give out loans. Nothing for banks to gain for the risk they have to take so only the best and safest customers are considered. Don't assume you're going to get that mortgage approved.
Hi, stupid millennial here who needs an ELI5. I was going to take a loan out of my 401k in the near future to get a new (used) car. Does this mean I won't have to pay interest on the loan if I take it out? Or would this not affect the loan?
Increase taxes and increase government spending. But the government needs to do that, not the Fed. Try convincing a GOP government that is required.
I know?
You understand that Trump has put Powell under tremendous pressure to do this for his entire term, right? And he was put on the spot last week when an idiot at nbc asked Trump why he hadn't tried to fire him. Basically daring him to try.
Yeah they are not but trump has been clamoring for them to go to lower interest rates and lately he has been calling for 0% or even a negative interest rate. And like all the other times the fed listened and within days capitulated to his whims. The whims of an idiot lunatic who only cares about the stock market doing well.
I'm not sure you understand how the Fed works. Powell casts his vote along with the other members. The chair doesn't raise rates.
Went all into gold warrants and etfs on Friday. Hopefully this debasing of the dollar will make me rich hahaha.
Is this YOLO time for say...buying a house/condo/co-op?
Or borrowing from your 401k in order to buy a house/condo/co-op?
Or borrowing from your 401k in order to buy a house/condo/co-op?
Right, and if we're in a recession (which is likely, along with probably most of the northern hemisphere right now), this is an independent, nonpartisan move.
Yeah to think people still think Trump leaves anything to be independent.
I wouldn't touch your 401k since it probably lost a lot of value in the past few weeks, but I'm with you on thinking about getting property soon. Assuming I don't lose my job.
i dont think he gives a shit about a recession,he just want to get re-elected on way or another he will gladly try to delay one as long as possible
That's what I was wondering. My savings account is now worthless with this but if it goes negative I have to pay money??
You're assuming the institution functions immune to outside political pressure exerted by this President, because that's how it's supposed to function.
short term good, long term inflation will accelerate quicker than usual.
No.
Mortgage rates tend to more closely follow the 10 year treasury rate.
The fed fund rate is the rate at which banks lend money to each other. The lower it is, the more likely to lend / more liquidity.
Think of it like the gas pedal of a car on a hilly road. They give it more gas or lay off trying to keep the cars speed (the economy and banking) constant.
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Personal opinion, but it won't transfer to mortgage rates yet. Recession will likely cause housing market crash. So housing prices will be cheaper in 3-6 months with interest rates being low. That's not for sure though.
Was planning to refinance student loans here in the next month or so. Should I hold off a bit for this to really be felt, or will it be pretty immediate?
Has Trump put pressure on Powell to do standing dollar swaps? Or is it the funding market that can fucking choke? Do you think Trump understands what a swap is?
