Interest Rates Matter

On Wednesday, September 18, 2019, the New York Times updated an article titled, "Trump Urgers 'Big' Rate Cut as Fed Faces Challenges." The article discussed the Federal Reserve cutting interest rates as the global economy slows down and the looming trade disputes between China and the United States. As the Feds try to predict the global economy, President Trump's zero and negative rates yet apply. 

Although this article doesn't seem to matter that much, interest rates affect everything from consumer spending, global markets, and availability to goods. If the interest rates are cut, the US would have a difficult time during a recession, and as Michael Feroli, the chief United States economist at J. P. Morgan says, “The consumer is doing well, but there are other parts of the economy that aren’t doing well: manufacturing being the obvious one, but business investment is weak, and foreign demand is weak.” The lack of manufacturing and business investments will eventually affect consumers and limit our spending and investment abilities.