ST Alpha - "Well no, they can unempty the tax cut chamber by just, you know, raising taxes--borrowing rates are relative. A change from 1.5 to .5 is not the same" (Reading a Post)

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In response to "I really don't think it would matter at this moment. We're just looking at a massive shock to the economy no matter how you look at it. 0% interest " by pmb

Well no, they can unempty the tax cut chamber by just, you know, raising taxes--borrowing rates are relative. A change from 1.5 to .5 is not the same

Posted by JackDawson (aka dawson) Mar 16 '20, 07:10

as one from 3.50 to 0, like with tax rates

the ability to ease anything is much less significant

(to be sure,we are starting at a - heh - deficit - given the cuts, but still)

Responses:

They can't raise taxes now. Ultimately yes, but not now. They can also raise interest rates eventually, but now it makes sense. Pretty much the - pmb Mar 16, 07:20 3
- I agree it makes 100% to lower rates, what I'm saying is that because the rates were already artificially low to begin with, that quiver is much less - JackDawson Mar 16, 07:23 2
  - Yes, I agree. - pmb Mar 16, 07:25 1
    - Right, and this is really a carry over from the financial crisis/Bush pressure on the Fed - JackDawson Mar 16, 07:27

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Well no, they can unempty the tax cut chamber by just, you know, raising taxes--borrowing rates are relative. A change from 1.5 to .5 is not the same

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