Will Republicans Fall for Inflationary Populism?
2 Articles
2 Articles
Will Republicans Fall for Inflationary Populism?
Donald Trump wants lower interest rates. He has said so openly and has pressured the Federal Reserve accordingly. The political logic seems obvious: easier money boosts asset prices, juices consumer spending, and appears to support headline growth. With midterms approaching, that sugar high is tempting. But it’s also a mistake — economically, politically, and strategically. Lower rates at this point in the cycle would almost certainly reignite i…
The President of the United States, Donald Trump, has already stated several times that he wants lower rates of interest to improve access to housing. However, the Federal Reserve does not directly define mortgage rates. These rates follow, in part, the performance of 10-year-old Treasury securities, which falls and falls for a series of economic reasons. “The mortgage market is very complex”, said Charlie Dougherty, senior economist of Wells Fa…
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