Re: Official - Will The Fed Cut Rates? on 9/18 Discussion
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I think they need to hold steady. Recession is inevitable no matter what they do so they might as well try to salvage the dollar.
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I am torn on what I think they should do. I am all for letting the market run its course and letting people pay for the bad decisions they've made. I do not believe it is the Fed's responsibility to bail us out. On the other hand, I think to some extent the Fed keeping rates so low in 2002-2004 provided fuel for this mess, and slightly reducing rates now allows them to correct for a previous mistake.
Ultimately, as a young investor with a long horizon, I am more concerned about inflation or the declining dollar hurting me over my lifetime than an immediate correction in the housing/credit markets. I guess I'd hope they hold steady, but ultimately I think they will lower rates.
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