Third Time This Year: The Fed Is Expected To Cut Rates Once Again

The U.S. economy grew by a mere 1.9% in the third quarter. While that number is slightly better than expectations it is still below the 3% mark that was promised by the Trump administration. And to attempt to mitigate the problems in the economy, the Federal Reserve has cut interest rates again.

Because the Fed followed through and cut the interest rates again, this was the third time this action has been taken this year.

What is strange, is that the numbers the government puts out look pretty good. The U.S. Department of Labor, in its most recent jobs report, said unemployment rates have fallen to their lowest level in 50 years and stocks have also been on the rise in recent weeks; on Monday, the S&P 500 reached a new all-time high, reported ABC News. 

But if this economy is so incredible, why would the Fed cut interest rates?

Federal Reserve Chairman Jerome Powell said at a Fed Listens event in Washington, D.C., earlier this month that the overall economy is “in a good place.” He added that “our job is to keep it there as long as possible.”

The bizarre and manipulated data continues to confuse people. More or less, the Fed cuts rates to stimulate borrowing and boost both consumer and business spending.  Cutting interest rates makes it easier for people to borrow and spend money and is a way to “give the economy a little more gas,” David Wessel, a senior fellow in economic studies at the Brookings Institute, told ABC News after September’s rate announcement. But it’s all sunshine and rainbows right now if you read the government’s own data.  According to the numbers the mainstream media reports, the economy doesn’t need more gas.

Odd Economic Numbers: Consumer Confidence Falls, But Consumer Spending Remains High

Perhaps we are being lied to…

-The US economy is in its longest economic expansion ever

-The unemployment rate has been sub-4% for more than a year

-Oil prices are 60% below ATHs from 2008

-The stock mkt is at ATHs again & up 15 out of the last 17 yrs

…and somehow the Fed is going to cut rates again

— Ben Carlson (@awealthofcs) October 30, 2019

But the Fed argues that this rate cut isn’t really going to do much anyway unless you are overloaded with debt. So again, why bother? “A single quarter-point rate reduction doesn’t really move the needle for people with card debt, but as these decreases continue, they do start to have more of an impact,” Matt Schulz, the chief industry analyst at the credit cards research site CompareCards.com, said in a statement Tuesday. “For the average person with $6,000 in credit card debt, these three rate reductions together will save them just under $100 in interest. That’s significant.”

According to CNN, the Fed cut rates because economic growth slowed.

Alan Greenspan: “Only A Matter of Time” Before Negative Interest Rates Spread To The U.S.

This article has been contributed by SHTF Plan. Visit www.SHTFplan.com for alternative news, commentary and preparedness info.