Earlier this week we asked you to think about the Federal Reserve’s action on interest rates, to understand what they did and why.
Economics is complicated, that’s for sure, and there’s a tremendous amount of uncertainty in the world today with coronovirus.
Here’s an article laying out in simple terms what happened with interest rates on Tuesday and what may happen with them going forward , and why it matters that the government take action when the sh*t hits the fan like it has been with covid-19.
There’s much that isn’t known and many many days of unknowingness ahead of us, and the markets are likely to continue their wild ride for a time. Markets hate uncertainty. Nobody can predict where this will take us, if it’s going to be a blip or if it’s going to sweep the legs out from under this roaring bull market and put all of us back on our heels. One thing we can say is, if the economy tanks, then there will start to be layoffs and job losses, and that’s an environment where competition for MBA admissions heats up again. So yeah, this may have an impact on you if you’re a candidate planning for the Class of 2023. Not that you can do anything about it. This is in the category of things in and out of your control, as we’ve also been discussing here lately.
On the topic of finance and stock markets, EssaySnark’s non-expert opinion is that the Fed acted too quickly with lowering rates this week. Shoulda kept the powder dry and watched for what would happen, to save that for when it might be really needed. It appeared to this ‘Snark that the Fed was trying to preempt the criticism coming from a certain individual on Twitter, rather than acting carefully and with foresight to do what is in the best interest of the economy as a whole.
We’ll have to see what happens. For now… do what they’re saying all of us should do, and wash your hands regularly!!!