Fed minutes reaffirm patient approach to interest rates in 2019

Posted by  $  mminnick 7 months, 1 week ago to Economics
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Economic growth over limited inflation control. (raising rates is a long term solution, not short) Made the right choice for once. Low constant rates = growth)
SOURCE URL: https://www.foxbusiness.com/economy/federal-reserves-releases-march-meeting-minutes


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  • Posted by CircuitGuy 7 months, 1 week ago
    They seem to be doing a great job of maintaining growth without inflation. Fiscal policy is where the looming problem is. Sooner or later they have to get the deficit under control, but they tend to wait until it's a crisis to act.
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    • Posted by  $  7 months, 1 week ago
      Revenue to the government has grown since Trump Tax cuts came in. That should help unless the politicians do there usual, spend the increase as well as the old amounts so there is not net decrease in deficit.
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      • Posted by CircuitGuy 7 months, 1 week ago
        "That should help unless the politicians do there usual, spend the increase as well as the old amounts so there is not net decrease in deficit."
        The deficit has doubled, but as you say it could go down if the economy stays this great and politicians don't spend the increase. It seems like politicians have a perverse incentive to increase borrowing and take credit for the borrowed prosperity. Then if the borrowing leads to a crisis, they take advantage of the crisis to be in the role of savior and/or to take actions that would be politically unpalatable in good times.
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