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The White House Federal Reserve Chairman Jerome Powell was a restraint pressure campaign President Donald Trump demanded that the Central Bank only reduces the ratios and up to 1%.
The proportion of the federal funds is currently seated at 4.25% -4.50%, ie the reduction of this magnitude, a sharp movement of the quarter of the quarterfold is expired in September.
It is so much, if Wall Street is really happening in the financial markets and economics, it is in fact that it will be.
“I don’t think this should be taken very seriously because it is so ridiculous, and in some sense is very low, very low, very low,” Jeffrey Roach, Chief Economist at LPPL Fortune.
Because long-term treasury productivity is the price of higher expectations for inflation, increasing debt costs for consumers and enterprises, the exhibition for higher expectations for inflation.
In addition, a low ratio is usually associated with the economic emergency, such as Covid-19 pandemic or a large financial crisis.
Thus, 1% in fact, enterprises, shocking enterprises, walk around another cup in the corner, and wait for Hunker and expand, wait for Roach warning.
“As a great job owner looking at the proportions of 1% or 2%, I definitely say:” What do I know that? “” He said. “So, I will not answer CAPEX’s increase and increasing operations. I will be more concerned with what these signals are.”
White House spokesman, Trump’s previous comments, Fed’s previous comments can always raise prices again to reduce inflation after cutting inflation.
In turn, Roach, as a result of inflation, the end of 2026, the end of 2026, and after the Powell Pandemic, inflation does not reach how long.
Similarly, the consultants of infrastructure capital CEO Jay Hatfield, was too late to increase prices, but also exploded their views to 1% of the nutritional ratios.
The treasury productivity would be immediately not reduced to 1% first. However, when the inflation is once signed higher, the Fed Funds will return to 4% to reduce the money supply by sending a 10-year productivity to about 5%.
After a mini decline or large retreat, productivity will be completed 3.75%. “So it’s a terrible economic policy to do this,” he said Fortune.
2.75% -3% would not have inflation or economy lower or lower the economy, but now will keep the trigger of a recession, Hatfield will be added. However, a measuret of money is required in a measure of 1%.
“It’s a completely ridiculous idea and will cause two-digit inflation,” he said.
