Comment by Ancalagon
16 days ago
well, yes, if Trump gets his way and gets a crony as the FED chair, interest rates will probably go very low
16 days ago
well, yes, if Trump gets his way and gets a crony as the FED chair, interest rates will probably go very low
The federal funds rate is not directly tied to commercial interest rates. If Trump actually does get his way and begins cutting the over night rate, I would actually expect investors to demand higher yields on US treasuries and commercial bonds, given it indicates the federal reserve is likely to allow inflation to increase, possibly by quite a lot