"Federal Reserve Bank looks like they'll be cutting interest rates in December again but also government spending can also contribute to inflation so we talked about how the economy is made up of private Spenders and public Spenders ERS well the government spends somewhere between 20 to 30% of our GDP depending on which report that you read and so what we know in 2024 is that the government has been ramping up this this public spending through deficit spending deficit spending means the government is spending money that they don't have so any money that the government spends is a tax either they're going to spend money that they generate from you through your taxes whether it's your property taxes your sales taxes your income taxes whatever it might be or if they spend money that they don't have which is called your national deficit then they have to raise this money through debt and many times they borrow this money from the Federal Reserve Bank which means the Federal Reserve Bank has to create this money and lend it to the United States government so this money gets created out of Dair it gets lent to the government and then that goes into our economy now remember more spending is good for the economy but that can hurt the inflation problem so generally when you see a recession you see a bad economy like we saw in 2020 we saw 2008 we saw in 2000 2001 what you see happen is the Federal Reserve Bank Works to create inflation they work to stimulate the economy how do they do that by cutting interest rates and printing money there's two ways to create this inflation to stimulate the economy the difficult part is after the 2020 pandemic that's what we did but that created an inflation problem because that's where we led to the 2021 inflation the 2022 inflation the 2023 inflation and even the 2024 High inflation and this is is where now the concern that many people have about the Federal Reserve Bank potentially cutting interest rates and the government continuing this deficit spending is that it could make the inflation problem worse"
By Minority Mindset | November 18, 2024 | Pending
From video
Inflation, Interest Rates, and Stocks: What Every Investor Should Know 00:07:17 - 00:10:00
Interpreted Prediction
Federal Reserve Bank cutting interest rates and continued government deficit spending could worsen inflation.

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