Bugsy Bennie steals from American Workers by lowering the FED’s interest rate.

[Democrats_win]

He gave the gamblers and crooks on Wall Street another reward for their corrupt dealings. This decrease comes at a time of double-digit inflation. Is this the intent of the Federal Reserve Act? This is not a very responsive way to deal with the current inflation.

What will the rate decrease do? It will promote further inflation in food and gas prices. Meanwhile the American worker, who’s wages are stagnant, will pay more for these commodities. Given that the FED should NOT lower interest rates, Bugsy Bennie is stealing from American Workers. Bugsy Bennie steals from American Workers by lowering the FED’s interest rate..

[Demobrat]

1. He steals from them in other ways too.

Low interest rates are good for borrowers, but they're bad for savers. Ask any senior who spent years building up savings with the intent of living off of CD interest. That used to be a viable strategy. Not any more. And then of course low interest rates discourage saving in the first place. Who's going to stash their cash in a savings account paying 1% when their credit card balance is at 19%? So people don't have emergency savings, so when there's an emergency they're forced to go deeper into debt....

[MercutioATC]

2. No, low interest rates are good for LENDERS, not borrowers.

...unless you count the banks that borrow from the Fed as "borrowers".

When the Fed lowers rates, that means absolutely nothing to you and me as borrowers. They're just charging the banks less interest when they borrow money. The banks then have the option to pass that savings along to us or keep the difference. Categorically, they kaap most of the difference. In fact, with the expansion of the Fed's discount window, banks were recently allowed to borrow money at an interest rate of one third of one percent. Did the banks pass along this gift from the Fed to us? No, they bought Treasuries that yielded 2.6% or so and pocketed the difference.

I agree with you about lower interest rates hurting savers, but they don't help borrowers, they help lenders.

[Hannah Bell]

3. So doesn't that = the banks making up their losses via

the taxpayers who have to pay off the Treasuries?

House always wins kind of thing?

[MercutioATC]

4. Exactly.

The deck is stacked and the government likes it that way.