dgmodel Posted October 29 Report Share Posted October 29 Would a Fed Rate Cut Boost Consumer Confidence??? Quote Link to comment Share on other sites More sharing options...
bigmahs Posted October 29 Report Share Posted October 29 Let's see,Consumer spending is 2/3rds of the economy but is 1/3 of GDP.The reason consumer sentiment plunged is a combination of things 1)Stock market drop 2)Layoffs 3) Terrorism.The market has been coming back because of better then expecting earnings by some bell weathers. This increase in the market will eventuallyy enlighten the consumers outlook.- Layoffs. this a lagging economic indicator the economy is usually out of a recession by the time the unemployment rate has hit it's peak. Unfortunatley LAYOFFS have a great impact on the consumer so this is why the talking heads have been barking about a double dipp recession I don't see it happening because of the red hot housing market.Terrorism- This is the tough one how do we implement a monetary tool to combat this we can't so we can only hope we get these coward's before they do anything else, that will be devastating.I don't think another rate cut can help confidence.. Quote Link to comment Share on other sites More sharing options...
bigpoppanils Posted October 30 Report Share Posted October 30 well a rate cut would lower interest rates a gain...feuling the real estate market rise and helping the automakers....but it would also be a sign to the public that the economy isnt getting better but worse..... Quote Link to comment Share on other sites More sharing options...
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