From the WSJ
Trump has badgered the Federal Reserve to cut interest rates, arguing that the Fed is needlessly inflating federal borrowing costs. Any new hints of inflation heating up again could make it harder for the Fed to justify a rate cut in the months to come.
“Needlessly” seems to be the key word. I guess if you are setting the Country on a course for more borrowing, you do want lower interest rates.
On the other hand if you are setting the Country on a course for higher prices and eventually higher inflation via massive tax cuts and tariffs while unemployment is low, why would you want lower interest rates?
Lower interest rates will stimulate the economy, make it easier to buy homes while many of the undocumented who help build them are being hunted down.
Here are the economic arguments.
Based on the current data, it’s a nuanced situation:
- Arguments for lowering rates: Inflation has come down significantly from its highs, and while still slightly above target, it’s much closer. Some forecasts also suggest slower economic growth and a higher risk of contraction, which could warrant rate cuts to stimulate the economy.
- Arguments against lowering rates (or for a cautious approach): The inflation rate is still above the Fed’s 2% target, and there’s a degree of uncertainty surrounding economic growth and the impact of tariff policies. The labor market remains strong with low unemployment. Cutting rates too soon could risk re-igniting inflation.
In summary, while there’s a strong desire in some sectors for rate cuts, especially given cooling inflation, the Federal Reserve appears to be taking a cautious approach, balancing the risks of inflation against the need to support economic growth. It’s likely they will continue to closely monitor incoming economic data before making further adjustments.
QUINNSCOMMENTARY 
Al Lindquist
I would leave the Fed to do its job as an independent agency–so far so good and as long as they control the money supply (M2) inflation should not be a problem–inflation is too much $ chasing too few goods–high prices a symptom, not a cause.
Illegal immigrants were crossing the border by the millions which was fine with Quinn and his lefty friends. Now the same folks feel the laws should continue to be broken and heaven forbid the illegals be sent back. Sorry! You came illegally and unless we change the law (I favor it) you need to go home.
I see these folks all the time as they work in my neighborhood and work for me with lawn–gardening–carpentry–painting. Ask what happens if I enter their country illegally and they all say you have to leave.
Legal immigrants are great–illegal immigrants work hard and are productive–but illegal either means something or not. Any other laws Quinn and his merry band feel should be violated?
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I am not an economist so my opinion is strictly confined to my own self interest. I like the rates where they are now as opposed to the near zero era we lived through a few years back.
It’s true the government pays more interest but it’s true that the people lost out on interest payments to fund lower rates for the government. Mortgages and car loans were cheaper but if you didn’t want a mortgage or car loans, you took less on short term savings to hand over to those who did. Most of my life was lived with interest rates about like now. The zero rate business was an anomaly.
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