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    My God, Powell Is Cutting Rates, Economy Will Explode, 7% GDP Growth Right In Time For 2020

    July 10, 2019
    2 Comments
    My God, Powell Is Cutting Rates, Economy Will Explode, 7% GDP Growth Right In Time For 2020

    This morning during testimony in front of the House Financial Services Committee, Federal Reserve Chairman Jerome Powell all but confirmed the Fed will be cutting rates at the upcoming July meeting of the Federal Open Market Committee, which determines short term interest rates in the dollar-based economy.

    “Crosscurrents have reemerged...Many FOMC participants saw that the case for a somewhat more accommodative monetary policy had strengthened. Since then, based on incoming data and other developments, it appears that uncertainties around trade tensions and concerns about the strength of the global economy continue to weigh on the U.S. economic outlook," Powell declared to nervous financial markets.

    The ramifications of this are staggering. President Donald Trump was right. Inflation is almost non-existent currently in the United States. There are few signs of overheating; on the contrary, there are some signs of cooling due to the Fed's multiple rate hikes which in hindsight look like a mistake.

    With the Fed lowering borrowing costs for consumers and corporations alike, look for the economy to skyrocket. US GDP growth will take off to the upside. Pent-up corporate cash will be unleashed.

    The timing is amazing.

    Barack Obama had basically zero interest rates for 8 years, allowing him to rack up more sovereign debt than all previous presidential administrations combined.

    Donald Trump will have Fed easing going into the home stretch of the 2020 presidential election, igniting the economy and allowing Trump to be re-elected, and pay down Obama's debt in the second term.

    #MAGA

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    Author

    L Todd Wood

    L Todd Wood, a graduate of the U.S. Air Force Academy, flew special operations helicopters supporting SEAL Team 6, Delta Force and others. After leaving the military, he pursued his other passion, finance, spending 18 years on Wall Street trading emerging market debt, and later, writing. The first of his many thrillers is "Currency." Todd has been a national security columnist for The Washington Times and contributed to One American News, Fox Business, Newsmax TV, Moscow Times, Novaya Vremya (Ukraine), the New York Post, National Review, the Jerusalem Post, Zero Hedge and others. He is also founder/publisher of CDM. For more information about L. Todd Wood, visit LToddWood.com.
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    Chuck Shick

    A couple of quarter point cuts is not going to ignite a 7% growth rate. Obama added about 8 trillion to the national debt. Zero chance of that being paid down in any consequential amount.

    Chas

    Are you sure you have the credentials you profess to have? The economy will not grow at 7% no matter how much wishful thinking you possess. The only way you will ever balance the budget is taking away social security, medicare, medicaid, and turning the increasing elderly population into an impoverished retirement. How callous and hateful can one person be?

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