Nicole Lappin

But then just earlier this week, he said he had no intention of firing Jerome Powell. But while the markets and politicians are thirsting for lower rates, let's just take a beat for a second. Should we even want lower rates? On the surface, it's easy to see why lower rates are super sexy. Lower interest rates mean it costs less to borrow money, and that affects everything.

But then just earlier this week, he said he had no intention of firing Jerome Powell. But while the markets and politicians are thirsting for lower rates, let's just take a beat for a second. Should we even want lower rates? On the surface, it's easy to see why lower rates are super sexy. Lower interest rates mean it costs less to borrow money, and that affects everything.

But then just earlier this week, he said he had no intention of firing Jerome Powell. But while the markets and politicians are thirsting for lower rates, let's just take a beat for a second. Should we even want lower rates? On the surface, it's easy to see why lower rates are super sexy. Lower interest rates mean it costs less to borrow money, and that affects everything.

28 percent that is a brutal brutal rate and it's part of why household debt is ballooning mortgage rates are still hovering around seven percent which is more than double what they were in 2021 so sure lower rates will help you pay less for a home for a car for your startup loan and everything in between and investors eyeing growth and tech also love lower rates lower interest rates make future profits more valuable and wall street loves that

28 percent that is a brutal brutal rate and it's part of why household debt is ballooning mortgage rates are still hovering around seven percent which is more than double what they were in 2021 so sure lower rates will help you pay less for a home for a car for your startup loan and everything in between and investors eyeing growth and tech also love lower rates lower interest rates make future profits more valuable and wall street loves that

28 percent that is a brutal brutal rate and it's part of why household debt is ballooning mortgage rates are still hovering around seven percent which is more than double what they were in 2021 so sure lower rates will help you pay less for a home for a car for your startup loan and everything in between and investors eyeing growth and tech also love lower rates lower interest rates make future profits more valuable and wall street loves that

If you have a 401k, an IRA, or even a self-directed brokerage account, you probably love that too. All of this sounds so great, right? So why isn't J-POW jumping to cut? Well, because lower interest rates are not a magic bullet in the overall economy. They are a short-term high, and they come with some serious long-term side effects, like inflation.

If you have a 401k, an IRA, or even a self-directed brokerage account, you probably love that too. All of this sounds so great, right? So why isn't J-POW jumping to cut? Well, because lower interest rates are not a magic bullet in the overall economy. They are a short-term high, and they come with some serious long-term side effects, like inflation.

If you have a 401k, an IRA, or even a self-directed brokerage account, you probably love that too. All of this sounds so great, right? So why isn't J-POW jumping to cut? Well, because lower interest rates are not a magic bullet in the overall economy. They are a short-term high, and they come with some serious long-term side effects, like inflation.

And yes, sure, inflation has cooled off a lot since the insane 9.1% peak that we saw in June of 2022. But core inflation, that's the one that strips out food and energy, is still sitting north of 3%. That is a full point above the Fed's target of 2%. So if the Fed cuts rates too soon, it could undo all the work they've done fighting inflation. We've seen this movie before.

And yes, sure, inflation has cooled off a lot since the insane 9.1% peak that we saw in June of 2022. But core inflation, that's the one that strips out food and energy, is still sitting north of 3%. That is a full point above the Fed's target of 2%. So if the Fed cuts rates too soon, it could undo all the work they've done fighting inflation. We've seen this movie before.

And yes, sure, inflation has cooled off a lot since the insane 9.1% peak that we saw in June of 2022. But core inflation, that's the one that strips out food and energy, is still sitting north of 3%. That is a full point above the Fed's target of 2%. So if the Fed cuts rates too soon, it could undo all the work they've done fighting inflation. We've seen this movie before.

In the 1970s, the Fed tried to bring down inflation but caved early. As a result, we got four recessions in less than a decade. That is not just a bad sequel. That is a horror franchise. Also, the housing story might not be a good one either. Lower interest rates means more people can afford to buy. That means higher demand, which means higher home prices.

In the 1970s, the Fed tried to bring down inflation but caved early. As a result, we got four recessions in less than a decade. That is not just a bad sequel. That is a horror franchise. Also, the housing story might not be a good one either. Lower interest rates means more people can afford to buy. That means higher demand, which means higher home prices.

In the 1970s, the Fed tried to bring down inflation but caved early. As a result, we got four recessions in less than a decade. That is not just a bad sequel. That is a horror franchise. Also, the housing story might not be a good one either. Lower interest rates means more people can afford to buy. That means higher demand, which means higher home prices.

This happened just a couple of years ago after rates were slashed during COVID. Mortgage rates, remember, dropped below 3%, but home prices shot up by over 40% in just two years. So even if your monthly payment goes down, the price tag on a new house may just shoot up and price you out anyway. The federal debt story is a complicated one, too.

This happened just a couple of years ago after rates were slashed during COVID. Mortgage rates, remember, dropped below 3%, but home prices shot up by over 40% in just two years. So even if your monthly payment goes down, the price tag on a new house may just shoot up and price you out anyway. The federal debt story is a complicated one, too.

This happened just a couple of years ago after rates were slashed during COVID. Mortgage rates, remember, dropped below 3%, but home prices shot up by over 40% in just two years. So even if your monthly payment goes down, the price tag on a new house may just shoot up and price you out anyway. The federal debt story is a complicated one, too.

You've heard me talk a few times on the pod about the theory that President Trump is using tariffs to put negative pressure on the economy so that the Fed lowers interest rates and the US can refinance its $36 trillion debt problem. And yes, lower rates would make that debt a lot cheaper to service.

You've heard me talk a few times on the pod about the theory that President Trump is using tariffs to put negative pressure on the economy so that the Fed lowers interest rates and the US can refinance its $36 trillion debt problem. And yes, lower rates would make that debt a lot cheaper to service.