"So, Pres Trump's policies have increased the amount of money that the Federal government needs to borrow."

Yes - and this is probably a new concept for your smooth brain - NOT ALL SPENDING IS THE SAME. You have productive spending and you have non-productive spending. Letting people keep more of their money (especially the smart ones as judged by their net worth) actually helps the economy by doing LONG TERM INVESTMENT. Meanwhile, dumping untold billions into programs like the Department of Education or USAID is just wasted money. Same goes with spending money on weapons for Israel and Ukraine.

"And, there may be less interest by other countries in purchasing that debt.
That results in a rising of interest rates."

It would if rates were actually set by supply & demand - which they aren't.

"So I ask once again, but differently this time, do Pres Trump policies cause the interest rate rise he seems to rail against?
#26 | Posted by LampLighter"

No - his policies - thus far - have resulted in huge real wage gains and inflation 20% below the Fed's target. If you want to argue that his policies thus far has done something other than what I just stated - then you need to bring the receipts and actually link to it. As to the future impact - that is speculative but my bet is that the base economy growth surpasses any impact due to increase money supply to fund the deficit - AND - that lowering the Fed Funds rate will actually decrease any inflationary impact by lowering our debt servicing fee by $180B - $360B over the next 12 months.

"@#23 ... Cutting rates DOES NOT SPUR ECONOMIC GROWTH. ...
It doesn't?"

No, it doesn't. At most, it is a weak correlation and shows no direct evidence of causation. As a personal example - say you want to buy a home but the interest rates are 7%. The next month, rates rates to 6.5% BUT - you receive a notice from you boss that you might be laid off. Are you buying because interest rates are lower - NO. People buy based on consumer confidence and that is not directly a causal relationship with interest rates. If it were, we would have had robust growth during QE 1, 2, 3, etc and Japan would not have had its lost decade. Further, Europe growth should be roaring now vs. stuck in ----. The whole 'cut rates to boost the economy' is one of the last widely-held false beliefs in finance and needs to ended. Just like 'stock buyback are a good thing' - they AREN'T.

"While the rate cuts may not result in an economic boom, they do seem to help the economy, making it less expensive to invest in and grow the economy."

They will help an already healthy economy because people were going to spend anyway - now, it just makes it a bit cheaper. It is the consumer confidence that matters and ACCESS TO CREDIT. The access to credit is also WAY MORE IMPORTANT than the rate itself. The house price run up from the early 2000's had NOTHING to do with the fed funds rate - it has everything to do with access to credit due to CMOs CDOs giving unqualified buyers money they otherwise would not have had regardless of the interest rate.

"Taking a different approach, why should the Fed lower interest rates?
#24 | Posted by LampLighter"

Because - as Trump and I have already told you - it is going to cost taxpayers an extra $180B - $360B this next 12 months because the Fed is going to sit with its thumb up its ass. $180B - $360B that otherwise would show up as deficit reduction.

Let me ask you this question - barring spending on interest itself - will Trump spend more or less in the next 2025 based on what the interest rate is?

The answer is NO CHANGE - he already is going to spend the money regardless of the interest rate. The only question is how much in extra interest are taxpayers going to be forced to pay because the Fed is artificially manipulating interest rates.

"The European economies do not show the strength your current alias has boasted about the current US economy."

This is where the current economists running the Fed have their heads up their asses. Cutting rates DOES NOT SPUR ECONOMIC GROWTH. Yes, it makes borrowing cheaper - but no company actually makes a decision to build a new factory over a .25% - .5% interest rate difference. They do it based on their short and long term forecast for customer demand/consumer confidence. Now, it does work the opposite though - raising rates does slow an economy. It is like a rope - pulling on it to slow an economy works, pushing on it to spur and economy does not. This is why growth was ---- despite YEARS of quantitative easing - also you can look to Japan and its lost decades despite near 0 interest rates. ----, during 2008, rates went NEGATIVE in Germany.

"So, yeah, they need to lower interest rates to help their economy. And, fwiw, I do agree the the US economy is currently stronger than the EU economies."

It will have NO EFFECT on their ---- economies. They need to do 2 things:
1.) Lower energy prices
2.) De-regulate

"So, if I may ask, is the US economy strong under Pres Trump, or is it weak?"

It is STRONG - and growing WITHOUT INFLATION - which is what the Fed is supposed to be guarding against. That inflation DOES NOT EXIST.

Again, the reason to cut interest rates is not about spurring the economy, it is about fixing the deficit by stopping the Fed from keeping interest rates high to help their banker friend - and themselves given they hold $5T in treasuries. That .5% cut is worth $25B in profit to the Fed alone.

"If it is weak, well, then, yeah, let's lower interest rates to boost it."

See above.

"Why might Pres Trump want the Fed to lower interest rates?
#20 | Posted by lamplighter"

Trump has already told you - and I told you above - it is about the US government saving $180-$360B in annual interest payments on the debt - money which is paid for NO BENEFIT OF THE TAXPAYERS and would not even be required to be paid if the Fed stopped artificially manipulating the treasury market.

"#17 | Posted by REDIAL"

The last person anyone should ask for economics advice is a ------- Canadian that just voted back into power the party that has delivered 0% GROWTH IN REAL GDP PER CAPITA IN 15 ------- YEARS. I mean, at some point even a crazy person will stop punching themselves in the balls - so, what does that say about Canadians?

"#15 | Posted by LampLighter"

I clearly outlined for you how inflation is calculated and what number is relevant. Now, do you have a question or concern about the data or do you just want to whine about how I refer to you -------- when you state your typical ------- opinions?

"That's an excellent observation."

No, it is a ------- STUPID OBSERVATION.

We have $36T in debt. That extra .5% - 1% in inflated interest rates costs US taxpayers $180B - $360B per year in interest fees paid for no reason. The Fed is guarding against inflation THAT DOES NOT EXIST - they do this to reward their banker friends because that is who matters to them.

"Pres Trump wants the interest rates to come down."

He wants to Fed to stop interfering based on their continually wrong assumptions about inflation. Europe has cut rates repeatedly while the Fed sits with its thumb up its ass. Worse, this is clearly political as the Fed cut rates under later term Biden when the inflation rates was 2x what we have now.

"But his policies cause the US to borrow more and more money."

EVERY POLITICIAN has those - and I didn't see you whining when Biden racked up $9T in debt in 4 years.

"As China and Japan may be selling US Treasuries."

They, collectively, hold ~5% of US government debt. The Fed itself holds 2x that amount itself. Japan and China selling to $0 would have ZERO impact on the US dollar.

"So, an ample supply of US debt, but less than an adequate demand to want to purchase that debt (bonds). What might be the result of that?"

Probably what we have had under Biden - the Fed simply buys it. The Fed had ~$2T on its balance sheet in 2019 - they bought more in the last 5 years than the entire holdings of Japan and China.

"Maybe, the US offering a higher guaranteed return for buying that debt?
a.k.a. higher interest rates?"

That 'marginal rate' for the current auction not only forces the US taxpayers to pay more - it inflates the price you pay on everything from cars, houses, and credit cards as those all index to the Fed rates. It is a COMPLETELY ARTIFICIAL RATE. Now, if you want to state the Fed is forbidden from buying and selling (Quantitative Easing goes away forever), I am fine with that. But, so long as the Fed is being politically motivated, their moves now are completely artificially and completely detached from Supply & Demand.

"With that in mind ... is Pres Trump, with his policies and laws passed, causing the very interest rates to rise that he says should be lower?"

The inflation rate RIGHT NOW is 1.6% for core and 0.8% for total inflation (due to energy prices decreases under Trump). Having a Fed Funds rate 3x the rate of current inflation when inflation is already 20% under their target is either incompetence or maliciously trying to destroy the US.

"Asked differently, and I'll be polite, does Pres Trump have modicum of a clue of how interest rates work?
#13 | Posted by LampLighter"

He does - you, on the other hand, clearly do not.

"You misspelled 3.05%.
#8 | Posted by jpw"

I will explain 1 time and 1 time only for you stupid -------- so pay attention.

What you are quoting is a Year-Over-Year change. The latest data is for May 2025 - the June data will not come out until July 15th.

So, when you use the number of 3.05% (which is the FORECAST), it is estimating the projected change in prices from July 2024 to July 2025. That includes the ridiculously high inflation under Biden for July 2025-Jan 2025 AND a FED forecast for which they have been repeated WRONG for June and July. THAT WAS NOT UNDER TRUMP AND DOES NOT REFLECT INFLATION TODAY.

To get what the rate of change is TODAY (or under Trump), we can take the data for most recent period and annualize it - in this case, we would use the data for the most recent Quarter: Mar'25, Apr'25, and May'25. Once the data for June is released, we can use April - June.

Pedophile massage enthusiast Alan Dershowitz claims he saw the list. I believe him on this.

"... Why it matters: The central bank is leaving interest rates paused for now, but the ultimate judgment over whether inflation is temporary or lasting will shape their willingness to cut rates in the months ahead.
#1 | Posted by LampLighter "

Typical ------- Fed - is this inflation in the room with them now? I ask as it sure the ---- is not seen in the economic data. Thus far under Trump policies, inflation is running 1.6% annualized. We are already 20% below their target rate but they sit with their thumbs up their asses worried about inflation they claimed would be seen in March, then April, then May, then June --- and they are still waiting.

"Gallup polling shows that Trump's approval ratings at the six-month mark in both of his terms are lower than any other modern president at the same time in their administrations, at 38% and 40% for each term respectively."

This is actually pretty funny as they link to 3 polls in the article itself:

YouGov/Economist: 42%
Morning Consult: 45%
Rasmussen: 49%

This would give an average of 45.3% - but, then it would not make headlines. So, they chose the 1 outlier poll. ----, the RCP average even has Trump at 46.3% - this is reason why NO ONE believes the lying MSM anymore. Total fake news all the time.