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27 Jun, 2019 14:07

US Fed cuts rates like an alcoholic who always drinks no matter what – RT’s Keiser Report

US Fed cuts rates like an alcoholic who always drinks no matter what – RT’s Keiser Report

Central banks are not supposed to manipulate the market and then base the policy on a manipulated outcome, says the host of RT’s Keiser Report, Max Keiser.

Let the market decide on the actual demand and supply, and then respond to it, Max advices. According to him, if somebody in Congress could ask Jerome Powell [Chair of the Federal Reserve] the simple question “under what circumstances he would raise interest rates,” the answer will be “there is no circumstance under which I would raise interest rates.”

Keiser, a former Wall Street stock broker, stresses that the answer to every single economic problem, number, statistic, or market reaction is “to lower rates.”

“It’s like an alcoholic – they drink when they are happy, they drink when they are sad, they drink because it’s Tuesday, they drink because its daytime, they drink because it’s night time. They are an alcoholic, they drink, drink, drink...”

Max points out that “Powell will cut rates whether the economy is expanding, or whether it’s contracting… he’s going to lower rates, makes no difference, that’s the only thing they do.”

For more stories on economy & finance visit RT's business section