President Trump wants lower interest rates and talks it about the subject at great length, unfortunately he does not set interest rates. In could be as a real estate developer, he wants interest rates to be very low, it could be for other reasons, although we saw 0% interest rates in Japan, but the economy was not good. There is a trade off, because the Federal Reserve Bank sets interest rates.

In an article by Christopher Rugaber of the Associated Press, the 19 participants who help set interest rates at the Federal Reserve, though the release of their minutes want to see inflation fall further before they would vote in favor of a cut. The committee views a number of statistics and sees the job market as stabilizing.

At the moment, most of the committee sees interest rates at a level that neither stimulates the economy nor restrains the economy. If interest rates fall, more borrowing would be expected to invest in businesses that would stimulate the economy. If interest rates increase, the level of borrowing would tend to fall which would tend to restrain the economy.

The Fed Rate is 3.6%.

One of the problems with the fed is the Trump administration desire to increase tariffs and decrease income taxes, which increases prices or inflation. Inflation is running around 2%.

There are many other factors but with the release of public data the public can come to similar conclusions as the Fed Board.

Linking to dividend paying stocks, as long as the yield or dividend rate on dividends is better than the interest rate, buying dividend stocks is a good alternative. If the company can continue to produce profits to pay dividends, the total return from the dividends and stock price increases should be better than investing your money in your bank’s products. If interest rates go to high, then move your money, but for now dividend paying stocks are a good investment.

There are more questions than answers, till the next time – to raising questions.