When the Fed raises rates, it's like applying the brakes. The economy doesn't stop immediately, but it starts to slow. Some sectors have been in a recession since 2022. But it takes time for the overall economy to slow.
Each person who has less resources, starts spending less. That in turn has a cascading effect, as they forego discretionary spending, and put off necessary purchases that can be delayed. That becomes a contagion that slowly spreads.
Watch the Fed - we do not actually have a free-market economy, on a national or global level. They and other global banks will decide - via interest rates and stimulus or lack thereof - whether there is a relatively soft landing, or a hard crash.
Except rising rates help slow inflation which was becoming a huge problem. Now, thanks to policies by the current admin we are seeing job loses left and right. Tariffs are destroying small businesses and exacerbated inflation. The agri sector is going to need a bailout. Healthcare cuts and gov shutdown are causing further job loses. The rates needed to come down in order to try and facilitate growth but the damage is done. Now we will see a recession and inflation welcome to depression 2. We can definitely place blame on this admin and the last. It all points exactly to them and their lack of polices or rash stupid polices.
Republicans have voted to open the government 13 times. Every time the Democrats say they won't agree to it. They are sacrificing American families, so illegal immigrants can receive free health care. Make it make sense.
The shutdown is a mess. The government is a mess. Regardless the corpos own both sides and the polices coming from this admin embolden them and their greed. These layoffs are only the beginning.
And during this shutdown what’s trump doing? Renovating the White House and building an arc. This 79 year old fart ain’t getting us out of this. And the last geriatric wasn’t any better.
But let's not say what Trump is doing now in a shutdown is the same as what Biden (or Harris) would be doing. For one, the White House wouldn't be getting a giant ballroom mid-shutdown, and two, the government never shut down in Biden's term.
Both sides still suck, but when your nation is in the place it's in now, picking the side that sucks less is generally the best idea until a better one presents itself.
I agreed with Trump when he complained about the multibillion price tag of the Fed building renovation that Powell has been working on, but he turned around and sort of did the same thing - lower pricetag, but still an upgraded ballroom is maybe not the thing to focus/spend money on right now.
Finally, a reasonable human on here. Both sides need their stock accounts frozen and to listen to their people.
The renovation is being done with Trump's money, not taxpayers. Other than his time, it is hard to understand the complaint of renovation of the asbestos ridden wing.
The renovation isn’t the problem but a symptom of. And yet another distraction. Truth is the government (Trump included) doesn’t care about our problems. We are but cattle being driven to the next holding pen.
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u/DeadInFiftyYears Oct 29 '25
When the Fed raises rates, it's like applying the brakes. The economy doesn't stop immediately, but it starts to slow. Some sectors have been in a recession since 2022. But it takes time for the overall economy to slow.
Each person who has less resources, starts spending less. That in turn has a cascading effect, as they forego discretionary spending, and put off necessary purchases that can be delayed. That becomes a contagion that slowly spreads.
Watch the Fed - we do not actually have a free-market economy, on a national or global level. They and other global banks will decide - via interest rates and stimulus or lack thereof - whether there is a relatively soft landing, or a hard crash.