Explained: Why the Fed lowering interest rates might be a BAD sign ...
When Glenn Beck first heard the news that the Federal Reserve lowered the interest rate by half a point, which is the first time it’s been lowered since 2020, his first thought was “this is election interference by the Fed.”
His second thought was that the last time the Fed did this, it didn’t lead to a positive outcome.
Recovering investment banker Carol Roth joins the show to break down the details.
“What’s really going on here, Carol?” Glenn asks.
“First of all, Glenn, I just want you to know that I am unburdened by what has been, and now the market is in terms of interest rates because we are in a rate-cutting environment,” says Roth, taking a jab at Kamala Harris.
“I think the important thing to remember is that when we talk about rate heights, rate cuts — anything the Fed’s doing — we have to keep it in context, and the backdrop is that we came out of 15 years of what's called ZIRP — zero interest rate policy — where the interest rates were at or near zero,” she continues, adding that in addition, the Fed put “$9 trillion plus on its balance sheet.”
According to Roth, there’s the potential for both good and bad with this lowered interest rate.
Starting with the potential bad, Roth says, “when you are saying that the economy is doing amazing” and then follow with “a very large cut,” it can “send a signal to say things are not going so well.”
However, “after 15 years of zero interest rate policy, it does make sense for us to get back to what's considered a neutral rate,” she says.
“Is this an inflationary move?” asks Glenn.
“So that’s the question,” says Roth. “If you think about what the neutral rate is, which is theoretical — we don't know the number — but basically it's the dividing line between policy that is restrictive and policy that is accommodative, and what we're trying to do is have the Fed have no influence in either direction. I believe that we are still in that restrictive area.”
“I don’t think that will cause inflation,” she says.
“I wouldn't be spending a dime right now on hiring, building — anything. Not a dime until I see what happens at the election,” says Glenn, adding that if Harris gets elected, he’s “battening down the hatches,” but if Trump wins, he’d be “willing to invest.”
To hear Roth’s thoughts, watch the clip above.
Want more from Glenn Beck?
To enjoy more of Glenn’s masterful storytelling, thought-provoking analysis, and uncanny ability to make sense of the chaos, subscribe to BlazeTV — the largest multi-platform network of voices who love America, defend the Constitution, and live the American dream.
'Blaze News Tonight' RECAP: Project 2025, the SAVE Act, and Inflation
The left is panicking over Project 2025, villainizing it as far-right extremism, but what's really in the document? Heritage Foundation president and co-author of the initiative Kevin Roberts joins the show to answer questions and debunk lies regarding Project 2025. Next, Sen. Mike Lee (R-Utah) explains the SAVE Act — a bill that would bar non-citizens from voting in the 2024 election. Democrats have largely voted against it; Biden has even vowed to veto it, and yet, 81% of the American people agree that only American citizens should have the right to vote in U.S. elections. What the people want is crystal clear, but how likely is the SAVE Act to pass prior to November? Finally, Carol Roth joins the program to tell us the truth about inflation, including what the recent one-tenth drop means for the average American.
Project 2025: Heritage President DEBUNKS Lies | Guests: Kevin Roberts & Sen. Mike Lee | 7/11/24www.youtube.com
Heritage Foundation president Kevin Roberts on Project 2025
Democrats are in an uproar over Project 2025, calling the initiative far-right extremism and attempting to attach the document to Donald Trump, who has denied any affiliation. Headed by the Heritage Foundation, Project 2025 is a detailed plan of policy proposals for the next conservative administration. What's in the document, though? Kevin Roberts, Heritage Foundation president and co-author of Project 2025, joins the show to "separate fact from fiction."
The list of lies liberals are spreading about Project 2025 grows longer by the day, but "the one thing they get right," Roberts says, "is that we call for the utter elimination of the U.S. Department of Education."
As for the people "doxxing" and "threatening" those behind Project 2025, Roberts promises unapologetic prosecution.
"We are going to prosecute you, and we're going to do that using every ounce of the law. It's going to be peaceful; it's going to be lawful, but you have picked the wrong fight," he says.
Sen. Mike Lee on the SAVE Act
Among the many fears Americans harbor regarding Biden's open border policies that have ushered in millions and millions of illegal immigrants is the concern that non-citizens will be given voting rights prior to the 2024 election, potentially changing the outcome. Sen. Mike Lee (R-Utah), however, alongside Rep. Chip Roy (R-Texas) and House Speaker Mike Johnson, have proposed the Safeguard American Voter Eligibility Act that aims to ensure only American citizens can vote in the 2024 election. Unsurprisingly, most Democrats have voted against it. Biden has also mentioned vetoing the bill.
Sen. Mike Lee, who joins the show, explains that liberal opposition to the bill is rooted in Democrats' desire to "rely on non-citizens" to impact "a federal election" — something he calls "terrifying."
While Lee admits that they face "some heavy obstacles to passing [the SAVE Act]," he knows that should the bill be voted down, the decision "is going to come at a price," granted "81% of American voters agreed that only citizens — only American citizens — should vote in federal elections," which is "a huge bipartisan supermajority."
Sen. Lee also broke down his op-ed on Blaze News, which discusses the legal lawfare the left has used to take down Trump. "[Democrats] are the rule of law," he says, adding that "Democrats love throwing around ... the term 'our democracy,' and yet, when they use the term democracy, they're more often than not talking about something that is the exact opposite of democracy."
As for President Biden's cognitive decline, Lee says his Democratic colleagues "are referring behind closed doors to this situation ... as the 'Weekend at Bernie's' chat."
"I think they've finally started to accept the fact that they've pushed it so far they can't take it any farther."
Carol Roth on inflation
Blaze News contributor and author of "You Will Own Nothing" Carol Roth joins the show to tell us the truth about inflation, one of the biggest — if not the biggest — complaint of American citizens.
"The top issue on Americans’ minds as they head to the polls is the economy," Roth wrote in her recent article "The GOP needs to stay focused on inflation, not cognition."
Roth, who agrees that Biden's mental acuity is a problem, argues that his administration's destructive policies — including the ones driving inflation through the roof — are the far more pressing issue.
"We're missing the opportunity when we're talking about his cognitive decline to talk about the fact that whether it's Biden or someone they put in his place ... these are the broader policies of not just this man but of the Democrats and that if we want to save our country, we need to be making a change in holding those people accountable, and that goes farther than just Joe Biden," she says.
As for inflation, which as of yesterday was down "one-tenth of 1%," Roth says she isn't hopeful it will make a real difference for the average American.
"A quarter of a percentage point, which is probably what is on the table today for September (if that even happens) isn't going to change things meaningfully," she says, adding that she thinks "we need to see something like a 1% cut ... then maybe Americans start to feel a little bit of relief in terms of anything that is tied to an interest rate."
"The most meaningful thing it will mean is that the $35 trillion in debt we have — that big portion of it that needs to be refinanced plus the almost $2 trillion deficits that we're running that need to be financed — they will be able to be financed hopefully at lower interest rates, which will overtime, theoretically, bring down the deficits and hopefully have a positive impact on inflation ... that's the best we can hope for."
For more provocative opinions, expert analysis, and breaking stories you won’t see anywhere else, tune in to 'Blaze News Tonight' daily on BlazeTV.