All we hear from the media is how bad our economy is performing. There is a consistent buzz about the need to have the Federal Reserve Open Market Committee reduce interest rates. Well, that’s not going to happen any time soon and here’s why. The “Fed” uses interest rates to regulate and stabilize economic cycles. A rate reduction is passed to stimulate a sluggish economy. But we don’t have a sluggish economy now. Our economy shows all the signs of growth. Consider: 3,059,000 new jobs created in the last 12 months; the unemployment rate is at 4% and holding–considered as “full employment” by every economist; jobless claims are way down from historic patterns; the stock markets are soaring into record territory; even the Dow-Jones Transportation Index–which signifies the movement of produced goods–is up over 14% since October, 2023; inflation as of May is very close to the “Fed” acceptable limit of 2%/year; and wages are nearly double the general rate of inflation. The simple fact is: whatever Biden or his advisors are doing–IS WORKING SO WE DON’T NEED A STIMULATING INTEREST RATE REDUCTION. Think about this: Unless you’re buying a home or a car an interest rate reduction means very little to the average citizen. The major money players are anxious for a reduction because it allows them to borrow at rates they think they can beat with more product, real estate developments, pure investment speculation or some other financial plan. Don’t be fooled by the media. In today’s postings we’ve included another segment of “managed headlines”. You’ll see the hollow rantings on what should be billed as a major success.
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