I suspect they will be forced to cut by political pressure even thou this will lead to even more inflation.
The financial reality is the federal goverment has soo much dept that just paying interest is more and more crowding out every other goverment spending project leading to even more dept and yet higher interest payments.
So its not soo much a question of whether or not there will be significantly more inflation but when which is why the federal politicians are having such a hard time selling their treasury notes at low interest rates.
There is simply no way congress will ever cut ~28% of the federal spending or be able to tax enough to simply avoid adding more to the deficient requiring even larger cuts.
So we are headed toward much more inflation and devaluation of servies no matter what at this point.
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No one knows for sure, but unless inflation drops or there is an shock to the US economy, rates won't drop.
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Probably won't until until a massive new housing program nationwide. Massive destruction of old housing as cheap as possible nationwide and rebuilding nationwide as cheap as possible.
Basicly a government forced housing boom like after ww2 without new technologies or new land to build on. Just brute force Government spending. Like the hoover dam Government spending without getting a hoover dam.
With the wars going on it won't be this side of the election for sure
Gold and oil are up so it's probably in the offing at least a little but it won't be below a couple of percent probably this decade unless something big happens like a repeat of 2008
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