Asking for all others like me
It’s part of the monetary policy of the US Fed (RBI of USA). These rates determine how much one can earn by keeping a fixed deposit with the bank - since Fed reduced this rate, anyone putting money in fixed deposit will earn 0.50% less. This will force people to move their money to places where the returns are high - like stock market, other businesses, investing in bonds, etc. By doing so, they will increase the money circulation in the economy - which will boost spending. When spending increases then GDP increases (nation grows). Also, when spending increases then cost of goods increases (inflation) therefore Fed can only do it to an extent. It’s a balancing act between inflation and growth.
There are other technical nuances involved here but this is the stripped down version.
It’s a 0.5% drop in interest rates, as 1 basis point equals 0.01%, resulting in cheaper loans.
Less interest on FD triggers -> More investment in Public Equity Markets Less Interest on Loans makes it cheaper to start the business -> More businesses decrease the unemployment rate
and primarily done because inflation was in control. If inflation was rising they would have done the opposite
Just an open ended question on why are layoffs happening on such a scale. I personally feel the skill to salary ratio has fucked up so much lately that the companies are having to fire people who are essentially useless to them. More of ...
Absolutely agreed. Hiring in hordes because money was easily available earlier and founders/companies thought that th...
