Stock analysts believe that the Fed will cut the interest rate to 2.5% by the end of first quarter! That is a very aggressive move. I wouldn't do that if I were the FED. The inflation is already there in US. Look at oil prices. It is up but only because the value of oil, it is also because the value of dollar is low. If Fed lower the interest rate even further, the dollar will depreciate more. I believe the value of dollars is as low as it can get, any lower will probably spark a major inflation. With interest rate at 2.5%, Oil price will exceeds 100 dollars easily. If the value of dollar gets any lower, everything traded in dollar will be higher...you shoes, your cars, your food, your water, your gas...etc.
There are ways, other than lower interest rate, that can help the US economy...the Government can give the right person right amount of the tax break or low interest loan. All you need is for those people who default on mortgage payment to be able to continue to keep their houses.
Existing User Log In
New User Registration
Register for a free account to gain full access to the VGChartz Network and join our thriving community.
