If the US Wants to Reduce Half a TRILLION in Debt Each Year – Have FED Chair Powell Reduce Rates to Obama Levels!
The FED is costing Americans a half a trillion dollars every year with their insanely high interest rates. If we want to save this amount every year, all we have to do is have the FED reduce rates to Obama levels.
Americans are deeply in debt thanks to the Obama era of spend, spend, spend. Over the Obama years the US federal debt load doubled from $10 trillion to nearly $20 trillion of US debt. Obama never cared about the debt burden he was putting on America.
Obama increased the US debt by $3.7 trillion in his first two and a half years in office. The debt rose from $10.6 trillion when he stepped into office and reached $14.3 trillion by June 30, 2011. This was a 35% increase in debt during this time. Never before or since has the US seen the amount of debt increase at such maddening levels.
Since President Trump took over the US debt has increased about $2 trillion or 10% of total debt. This is over a two and a half year period. The debt load when Trump was elected stood at $19.9 trillion. Today the US debt load is $22.0 trillion.
The problem is that under Obama the FED kept interest rates at unheard of lows (at 0%). The FED kept these rates for seven of Obama’s eight years in office. With higher rates Obama would have increased the debt by trillions more.
Under President Trump the FED quickly and radically increased rates by about a quarter of a percent his first two years in office.
The FED members are not elected by the US people but they do impact all US citizens 401k’s and life savings. They impact mortgage rates and the stock market. They have an impact on GDP.
President Trump is now paying 2% more on interest payment than Obama. This amount (2%) on $20 trillion in debt is nearly a half a trillion dollars a year. If the FED wants to help Americans and decrease the debt, all they would have to do is decrease interest rates to Obama levels!
President Trump recently hit worthless FED Chairman Jerome Powell again during his interview with FOX Business Network host Maria Bartiromo.
President Trump told Bartiromo,
“We’re taking money out and raising interest rates. It’s insane. He never should have raised interest rates to the extent that he did. If he would have raised them, just half, and if he would have not done the quantitative tightening, our market would have been up another 10,000 points and I’ll tell you, GDP would have been up another point or two points… Here’s a guy — nobody ever heard of him before. And now, I made him, and he wants to show how tough he is, okay. Let him show how tough he is. He’s a– he’s a– he’s not doing a good job.”
Via FOX Business Network: