• the American economy is hot

    From JAB@21:1/5 to All on Sun Jul 27 07:08:58 2025
    Johnson went on TV and supported Donald Trump's demand that the
    Federal Reserve cut interest rates. Why should the Fed cut? Because,
    said Johnson -- echoing Trump -- "the American economy is hot."

    That sound you hear is thousands of economists slamming their heads on
    their desks. Interest rate cuts aren't supposed to be a gold star the
    teacher gives you when you did well on a quiz. Interest rates are a
    tool for managing the economy -- and a hot economy is a reason to
    raise rates, not cut them.

    Paul Krugman
    Jul 27

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