The Federal Reserve should get our interest rates down to ZERO, or less | Forex Factory

  • The Federal Reserve should get our interest rates down to ZERO, or less

Added at 5:45am
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NotAtrader
Sep 11, 2019 6:12am
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It takes a heck of a stonehead to make such statement from the office of a president.
However, as mentioned above - who cares. That makes volatility and volatility makes money.
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foto
Sep 11, 2019 6:07am
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No Donald they should not.
People who worked a Lifetime to save and scrimp putting their Trust in the currency of their country are now going to get really shafted for what reason?
Money is not a Play thing that Government gets to abuse. It is the foundation of Trust in Government.
Full Faith and Credit is backed by the American people. It is not backed by you Donald Trump.
Get your act together.
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Vancarbon
Sep 11, 2019 6:26am
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European banks have stepped up their protest against rock-bottom interest rates ahead of this week’s ECB meeting, which is expected to underpin a policy that tramples their profits and has even pushed some to offer free loans.

The president of Germany’s powerful savings banks association, community lenders that dominate the country’s shopping streets, joined Dutch bank ING yesterday in criticising the ECB’s loose monetary policy.

“People feel there is an ever bigger hole in their future pensions. They are saving more because they are not getting any interest,” said Helmut Schleweis.


Low interest rates coupled with penalty charges on banks that hoard cash is making it more expensive for the banks to hold customers’ savings and less profitable to lend. The criticism is aimed squarely at those penalties and the interest-rate cuts made by the ECB to buoy the eurozone’s economy after the financial crisis.

The problem is particularly acute for Germany’s biggest banking sub-sector, the savings banks, which have a glut of money that is expensive to hoard.

Its 50 million customers have increased their savings by almost 5% since last year to €965bn which is roughly the size of the Dutch economy. With lending amounting to about €860bn, the banks are left with a chunky unused surplus.

Their concern echoes a recent plea by the head of ING for the ECB to change course. Ralph Hamers, who heads the Dutch banking company, said there was already enough cheap money and that more will not boost weak confidence.

Last week, Deutsche Bank chief executive Christian Sewing also predicted that zero rates “will ruin the financial system”.
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emurithi
Sep 11, 2019 6:41am
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Quoting 2dollardog
{quote} What is he trying to achieve? What would happen if they went to zero? Not being facetious. Legit Q> Can pm the answer if you want to avoid MOAB comments. ha
Lower interest rates spur consumer borrowing, home sales & consumer spending thus accelerating economic growth. Rates are historically lowered to ward off recession or when there is a substantial risk of a an economic downturn.
Makes sense?
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Rakeem
Sep 11, 2019 6:24am
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Quoting OnlineAddict
{quote} Well, many countries didn't have such low interrest rates, its time to adapt.
USD never been on zero even during recession, how you can expect zero rates when "economy is doing great", what he says
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Not-KPMG
Sep 11, 2019 6:43am
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Ohhhhh
Yesterday :

Quoting Not-KPMG
Nice jabs
Can i throw a question here. We know crisis is coming. We know printing billion trillions is coming. Rates will be zero OR UNDER ZERO. :...if you have MORTGAGE at UNDER ZERO times, do YOU GET $$$$$ paid to you?
Hohoho

Trumpy may be azzhole.... , but he DOES LISTEN To ME
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ettrader
Sep 11, 2019 10:50am
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I've been following these markets since the crash of '87 but I've never once heard a US president insult the Federal Reserve like that before in this case by publicly calling them "Boneheads". It's getting crazy out there now
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OnlineAddict
Sep 11, 2019 6:04am
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Quoting Rakeem
This man is crazy, how you can say this stupid thing at this market condition, down to zero, usd never has zero interest.
Well, many countries didn't have such low interrest rates, its time to adapt.
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afevir
Sep 11, 2019 6:13am
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wow, stronger Sr. Trump, I like it
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Trader#73CA
Sep 11, 2019 6:06am
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Well if you up the trade war with China- Problem solved ;-) Wont look good for your re-election campaign though.One thing I'm fairly sure of is if the ECB lower rates tomorrow, the tariff gun is ready, loaded and pointing at Europe next. You may want to trade accordingly and position yourself to make money instead of moaning about Trump.
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Not-KPMG
Sep 11, 2019 6:45am
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Quoting NotAtrader
It takes a heck of a stonehead to make such statement from the office of a president. However, as mentioned above - who cares. That makes volatility and volatility makes money.
Yep.

And oddly dollar up

Noone believe psycho Trampy.

Ooops
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Rakeem
Sep 11, 2019 5:58am
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This man is crazy, how you can say this stupid thing at this market condition, down to zero, usd never has zero interest.
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b_hand
Sep 11, 2019 5:48am
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We dont care!!!
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ettrader
Sep 11, 2019 10:10am
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I've got a solution to fix the economy disable Twitter's servers
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NotAtrader
Sep 11, 2019 10:29am
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Quoting ettrader
I've got a solution to fix the economy disable Twitter's servers
Believe me he will register with all forex trading forums and spread around the same crap. The man never gets tired. Have you seen a crazy man getting tired of doing something whatever that is? I haven’t.
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Not-KPMG
Sep 18, 2019 6:31am
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Quoting NotAtrader
It takes a heck of a stonehead to make such statement from the office of a president. However, as mentioned above - who cares. That makes volatility and volatility makes money.
Big day today

Visit us sometime NaT?
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Not-KPMG
Sep 18, 2019 6:32am
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Quoting ettrader
It's not just rates at Zero Trump wants he's talking about another wave of tax cuts just.. .
Let me finish for you.

.....to make his rich bosses richer.


For all we know Trumpy is bancrupted or is owned by his puppeteer.
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2dollardog
Sep 11, 2019 6:08am
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Quoting OnlineAddict
{quote} Well, many countries didn't have such low interrest rates, its time to adapt.
What is he trying to achieve? What would happen if they went to zero? Not being facetious. Legit Q> Can pm the answer if you want to avoid MOAB comments. ha
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Skracor247
Sep 11, 2019 8:15am
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Quoting foto
No Donald they should not. People who worked a Lifetime to save and scrimp putting their Trust in the currency of their country are now going to get really shafted for what reason? Money is not a Play thing that Government gets to abuse. It is the foundation of Trust in Government. Full Faith and Credit is backed by the American people. It is not backed by you Donald Trump. Get your act together.
Interest rates at zero is not, by itself, enough to weaken a currency sufficiently to make a huge difference to the savings of the US people. It would temporarily weaken the dollar versus other currencies but with the constant demand for dollars generated by the petrodollar and its reserve currency status its value would remain much the same.

If the US government decided to expand the budget deficit in tandem with zero interest then we would have more of a problem. If you saw the FED expanding its balance sheet as well then a new weakening cycle will have started in earnest.
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UKBanter
Sep 11, 2019 7:13am
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I was thinkin about this move last week (honest I need to get out more). My question is once you are there at zero is there any way out if there comes a requirement to do so? eg Japan hasnt worked a way out but maybe they are no longer looking.
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Momofrmnyc
Sep 11, 2019 9:48am
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Quoting Simon-1988
Guys it's a tactic he know the Fed is not going to lower IR , there is now way they can do that in a good economy so the only way to lower $ t without actually affecting it is through his tweets , With Trump what he says is for show what he does is his true Plan.
Pretty much so when it doesn't go his way he has a scapegoat to call the blame on. We are talking about a guy whose leverage bankruptcy in his own businesses for his own gains. What he is saying is simply absurd but obviously Trump knows everything according to him.
ettrader
Sep 11, 2019 9:58am
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This guy knows everything about everything he's offering the Federal Reserve his guidance so they can understand what they are doing and where they are going wrong. All for free! What he's saying is bring it down to zero so that there isn't any point in buying bonds because they'll go negative and you can invest in gold for free sounds good to me.
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ettrader
Sep 11, 2019 2:43pm
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It's not just rates at Zero Trump wants he's talking about another wave of tax cuts just to show the world how great the American economy is. Trouble is he is using up all of the tools possible if the financial markets collapse so if they do collapse all ammunition is ued up already. You cannot trust somebody like this that's why I'm selling every rise on my stocks which thanks to Trump have given a fantastic return but those profits look too good to lose right now.
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gat
Sep 11, 2019 9:19am
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I agree with Trump on everything but not this. Debt should be expensive. After the 08 housing bubble burst personal debt decreased for all of 8 or 9 months. then people started piling it on again.A prime at zero would make earned interest even more pitiful than it is penalizing savers. Also forces more risk by pushing cash into stocks. higher stock prices are a good sign to a point then become a false imaginary wealth.government debt and personal debt do not have to be treated the same way. Just like property tax liens are often bought at 0% by the mortgage holder the Fed can buy government debt at 0%. Not saying that would be good with Congressional spending but it could be done.
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hilmansyah
Sep 11, 2019 5:56am
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keep talking, stonehead, then we short lol
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AnniLi
Sep 11, 2019 5:49am
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New depths of banality.
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hesron
Sep 11, 2019 6:04am
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the longer it is observed ... he tends to destroy himself when in a situation that is uncomfortable for him ...
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2dollardog
Sep 11, 2019 5:51am
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"Boneheads." lol good grief
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tush1822
Sep 11, 2019 7:46am
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means definitely underlying US numbers are weak!!
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Maxthetrader
Sep 11, 2019 9:19am
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What a bunch of crybabies we have on this board! Use stop losses on your trades and you'll be around for the next trade.
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Simon-1988
Sep 11, 2019 9:44am
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Guys it's a tactic he know the Fed is not going to lower IR , there is now way they can do that in a good economy so the only way to lower $ t without actually affecting it is through his tweets , With Trump what he says is for show what he does is his true Plan.
Reply
AnniLi
Sep 12, 2019 3:52am
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Inflation is a big problem once it gets away on you and every country is very wary about preventing inflation. The current US administration shows no understanding about this risk instead pointing to the big problems other countries are having with deflation risk. Is USA facing deflation risk? If so, then why doesn't the administration say so. Is the White House very worried about deflation? What is the analysis? What is the evidence? The American people must know! They deserve to know! They want to know! US citizens are not hysterical human beings. They know that excess demand drives inflationary pressures and you have to have mechanisms to hold demand in check and to monitor the economy's ability to produce (supply). Excess demand in the economy means that the overall aggregate demand exceeds the aggregate supply which USA can produce and that spells trouble - right here in River City.

Deflation, on the other hand, is caused by excess supply meaning that there is insufficient aggregate demand in the context of the current ability of the economy to produce (supply). If this is the President's argument and he has many enlightened thinkers to advise, him such as Larry Kudlow, then let's again hear the evidence being considered and the opinions expressed based on that evidence. Let's hear it, please. Its vitally important that we get this precious evidence to guide the Federal Reserve, the nation and the American people. We want to know!
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Ghass1234
Sep 11, 2019 8:19am — Edited
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Fed will not do nothing , all data is better than expected , Trumpy go and F yourself . Sell Gold , Sell Eur , Sell everything against Dollar. Dont ever listen to this stupid, he is just manipulating the direction of the market.Gold is still up any ideas why ? this fuckin yellow metal
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Trader#CE09
Sep 11, 2019 6:13am
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Trump might be a lot more helpful if he would simply follow tradition and leave the Fed to their job. This is coming from something like panic out of declining approval ratings, but as a matter of fact timing is everything for the Fed in any policy action the Fed determines appropriate in the times ahead. There is something called the multiplier effect which has a duration somewhat specific to different economies. Even if the Fed were inclined to follow his advise they would need to a) determine magnitudes along that line and b) project the effective time before it impacts the real economy and c) theorise as to what the impact would be at that point. This is outside the scope of how Trump is reasoning right now. If a recession is on the way there is nothing that will stave it off before it hits like he appears to imagine. This thing requires careful professional management once upon the political economy and management is usually best undertaken where there is little to no political pressure from managers of the fiscal economy. If Trump has solutions in the realm of his control, he can as well try to affect things in that sense (e.g. stop the trade war) and the Fed will take that into consideration in their own prescriptions. But leaving the money managers alone is candidly the best thing Trump can do at this point.
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XolaniPhahla
Sep 11, 2019 7:30am
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He is trying to move the markets again, there is something wrong with him..
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shoresgp
Sep 11, 2019 2:09pm
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Perhaps, but it's none of your business Mr Trump
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