r/politics 🤖 Bot 1d ago

Discussion Discussion Thread: US Senate Debates and Considers the Republican Budget Resolution on April 4th, 2025

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u/KrankyKoot 1d ago

Somebody posted the plan that with a recession the fed will be forced to lower rates which would allow the debt to be refinanced allowing room for his tax cuts. And he supposedly cheered the idea. I couldn't find the post but absolutely would expect this from him. He's already bitching that they aren't cutting.

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u/Adventurous-Tone-311 1d ago

Yeah that's not how that works. If the economy continues down this path, rates will never be cut and may potentially rise.

When the banks take greater risk in lending money, naturally rates go up. It's insane to me that Trump doesn't understand this simple concept.

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u/Embarrassed-Track-21 20h ago

Let’s be realistic, banks above a certain size in America don’t face risk anymore and haven’t for a long time.