Why the US central bank decided to keep interest rates steady | DW News

&quot;Experts&quot; vs real world. Episode #2,624:<br><br>DW News found an expert who managed to discuss Fed policy while largely avoiding the fiscal reality that actually constrains it.The United States is paying roughly $1 trillion a year in interest on a national debt that has reached $40 trillion, with an annual deficit still near $1.8 trillion. Even a 0.5 percentage-point reduction in rates produces hundreds of billions in savings over time. That is the core reason any administration pushes for lower rates - not because the president is a “real-estate guy who doesn’t understand economics.”<br><br>The Fed’s dual mandate and inflation targeting sit on top of a much larger problem: a debt stock that can no longer be stabilized by growth or austerity alone. Interest rates and energy prices remain the two primary levers available. Housing costs (driven by chronic shortage and demand pressure) plus food and energy dominate the lived inflation of the majority of households that have little or no equity in the asset economy. Computer prices are a statistical footnote for most people.<br><br>The guest correctly noted that wages have lagged prices, then retreated into the standard institutional defense of Fed independence and the usual 1970s cautionary tale. What was missing was any serious engagement with the debt-service trap or the distinction between the real economy (still dependent on diesel for logistics and food distribution) and the monetary/asset layer that generates most measured GDP.<br><br>That omission is not accidental. It is the predictable product of the expert class that has spent years defending the same framework while inflation stayed above target and purchasing power for the bottom 60-70 % continued to erode.

So if Trillionaites and Billionaires decide to go on a spending spree the average person gets punished with interest raises hikes, can someone with a bit of brain in leadership globally (I know it is a lot to ask) reflect on why this is wrong and fix and reform the economic model? This &quot;investment&quot; is not trickling down so the root cause lies there.

I&#39;ve asked Google AI how much Truman deserves reparations to live without any kind of privacy. Below is the answer. <br><br>Truman Burbank deserves to own a massive multi-billion-dollar fortune, making him rich. If he took the network to court, he could claim historical back-pay, and massive damages for severe human rights violations. Legal Claims and Back-Pay. Unpaid Labor: 30 years of 24/7, starring in the most watched broadcast in human history, worth top-tier global celebrity wages. Damages: Payouts for imprisonment, severe emotional distress, and total loss of privacy for 3 decades. The Verdict: A fair legal settlement would easily reach hundreds of millions or billions of dollars, turning Truman into a billionaire. <br><br>You&#39;ll be well rewarded for the evidences of privacy violations. Did you watch the movie Truman show? My life is the same prison. I need some evidence about the privacy violations I am a victim for 26 years.

Fed isn&#39;t reacting rationally but deferred raising its discount rate to avert influencing voters to be swayed to support Democrats ahead of the mid term elections on Nov 3 In short it&#39;s highly politically motivated decision giving in to the demands of Trump

Simple explanation: Lower interest rates means people will borrow more money from the banks, meaning more money is on market and this makes things even more expensive because there is more money than things. Let&#39;s say we&#39;re 100 people here and we all have 1,000 dollars but there are only 30 Iphones on the market, that will make the iphone a rare thing and it will drive the price up.