Why the FED cut the interest rate

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The Federal Reserve (Fed) cuts interest rates to stimulate economic growth. By lowering the cost of borrowing, the Fed encourages businesses to invest and consumers to spend, which can lead to increased economic activity and job creation.

However, it's important to note that the Fed also considers inflation when making interest rate decisions. If inflation is too high, the Fed may raise interest rates to slow down the economy and prevent prices from rising too quickly.

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However if you observe the Japan economy, the negative interest rate has limited impact of the economic growth. On the contrary in the US, the high interest rate has grown the budget of net interest  from 6% in 2022 to 13% in 2024. More than double! The proposed budget is well below the actual spending.

The US national debt is now a whopping 35 trillions. Some may argue that the number itself is pointless. It is the % of GDP that count. However, even that does not paint a good picture.

Yes, the interest rate should come down a little. But to stimulate the economy more needs to be done. Rising tax, esp. import tax does not help. Protection does not build a better American. Globalization does.