We know Powell won't raise rates today.
The question is: is intentional?
Trump and Biden have run the debt-to-GDP ratio/percentage to over 100%. In order for the government to manage the interest expense on the debt, either Powell has to lower rates significantly, or high (but controlled) inflation must continue for some time so the debt-to-GDP ratio drops to a manageable level.
I'm betting it's the latter.
Which is extremely bad news for our middle class and youngsters.
Be the first to reply to this comment.