The Fed has the responsibility of stabilizing prices and maximizing employment. Powell has held its benchmark rate for overnight loans constant this year, saying that Fed officials needed to see what impact Trump’s massive tariffs had on inflation.
The Fed has the responsibility of stabilizing prices and maximizing employment. Powell has held its benchmark rate for overnight loans constant this year, saying that Fed officials needed to see what impact Trump’s massive tariffs had on inflation.
America is the biggest economy in the world by a long shot. Everyone well feel it if their economy collapses.
It would certainly be global chaos.
People who haven’t been bludgeoned to death by finance professors don’t comprehend the magnitude of it.
2008 was a good outcome compared to what would have happened if all the accounts were able to settle. If the US defaults, the entire global financial system crashes, probably irreperably. Honestly it would take less to make it happen (as those who were paying attention in 2008 know) but a US default would definitely trigger it.
Unfortunately it’s all a house of cards anyway… We might have been better off with the Castrophe happening in 2008 then now, politics would definitely have played out differently…