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The interest rate strategy, that's what the Fed focuses on rather than the money supply, which I think is a mistake. | |
But in terms of interest rates, why not let the bond market tell us what to do? | |
And actually, yields have been coming down slightly and mortgage rates have been coming down slightly. | |
So that suggests that maybe you could cut interest rates, but I wouldn't go overboard because the biggest problem with the Federal Reserve over the years is that we've created a boom-bust cycle through easy money, type money, easy money, type money. | |
And we've gone through a period of easy money after with the Biden administration interest rates were declining and so forth. | |
And then afterwards in 2023, 2024, you saw interest rates move back up, inflation taking off and so forth. | |
You want a stable Fed policy. | |
That's really the key. | |
And it sounds like President Trump wants an easy money policy., which always leads to a boom-bust cycle. |