Here we go again with the idiotic 1970s Phillips curve logic that lower interest rates and more money means more growth. What creates growth is a dollar that remains stable in value.

We have no problem with a rate cut – because inflation is fairly tame right now – but we don’t see it as some kind of magical fairy dust that will stimulate the economy.  We had interest rates much higher in the go-go 1980s and 1990s than today.

We had some of the lowest interest rates during the Great Depression.  Where was the growth?

In the 1970s, we had near double-digit inflation AND unemployment rates at the same time.

We will shout it out one more time: the best way for policy makers to ensure more growth and prosperity is to cut GOVERNMENT SPENDING and tax rates, not interest rates.