Should the FED cut or not cut interest rates? if it should cut intereste rates, why is that so?



Answers:
They shouldn't cut it because it will be see as a bailout of doomed to failure lenders and borrowers. This will allow house prices to tip out so general public who couldn't afford a home can obtain one. It might lower the income of elderly populace living on interest on CDs.

They should cut it because it will give support to the stock bazaar and it might accumulate 1/4 point for some borrowers which might cause the marginal ones hold on longer.
With soaring volatility and the impending downslide of housing. Cutting rates is the individual mode to take the edge off the torment of indisputable estate by keeping buyers in the marketplace by increasing buying power, when they would be running for the hill if rates be to run up.


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