🚨 THANKS TO JEROME POWELL, MIAMI VOTED BLUE FOR THE 1ST TIME IN 30 YEARS
And now, during the course of the next decade, Miami is about to find out just how big a mistake they just made
FACTS:
When the economy cools, the Federal Reserve NORMALLY lowers the prime rate (the rate that determines the interest rate on loans). This makes loans less expensive, thereby promoting their use to increase productivity and inventory. This is most favorable to farmers and seasonal businesses, who must take out loans each production season (which are usually repaid at the end of the season). Also, consumers see lower costs on their purchases, as there is plenty available all around.
What happens when an economy cools and, as Jerome Powell did, the Federal Reserve refuses to lower the prime rate? Well, the ratio between their loan costs and what they can fetch at the market when they sell increases - they have to sell more to come out even. BUT, the cost of having a loan has not come down, so what happens? The price remains high...
Which kills affordability…
Yes, Jerome Powell started lowering the prime rate - yet his delay by MONTHS in doing so has already done its damage. But he will retire, enjoying his retirement, while everyone else will be dealing with the aftershocks of the affordability he has left behind.
All of this is reversible by reducing the prime rate by 100 points (a whole percentage point) - but Jerome’s hatred of Trump is greater than his desire to serve the people. His retirement cushions him from his own actions, but the average American is left holding the bag.
Blaming Trump for the affordability issue right now is akin to blaming your boss for whatever bad thing a family member of yours has done to you - the U.S. President cannot ditch the Chairman of the Federal Reserve, he is stuck with him, which means we are as well…
Have you ever noticed the guilty are ALWAYS the least affected by their actions???
Yeah, THAT...
