Will fed cut interest rates if debt default happens?

[Manishican]

Will fed cut interest rates (may be to zero) if debt default happens as US will enter a recession? 

[kiran1012]

7 minutes ago, Manishican said:

Will fed cut interest rates (may be to zero) if debt default happens as US will enter a recession? 

Here are some of the factors that the Fed would consider when making its decision:

The severity of the default: A small default might not have a significant impact on the economy, while a large default could lead to a recession.

The state of the economy: If the economy is already in a recession, the Fed might be more likely to cut rates in order to stimulate growth.

The Fed's assessment of the risks and benefits of cutting rates: The Fed would need to weigh the risks of inflation against the risks of a recession when making its decision.

It is important to note that the Fed is not obligated to cut interest rates in the event of a debt default. The Fed has a number of tools at its disposal to address economic problems, and it will use the tools that it believes are most effective in the given situation.

[Manishican]

1 minute ago, kiran1012 said:

Here are some of the factors that the Fed would consider when making its decision:

The severity of the default: A small default might not have a significant impact on the economy, while a large default could lead to a recession.

The state of the economy: If the economy is already in a recession, the Fed might be more likely to cut rates in order to stimulate growth.

The Fed's assessment of the risks and benefits of cutting rates: The Fed would need to weigh the risks of inflation against the risks of a recession when making its decision.

It is important to note that the Fed is not obligated to cut interest rates in the event of a debt default. The Fed has a number of tools at its disposal to address economic problems, and it will use the tools that it believes are most effective in the given situation.

Valid points. If there is a full/severe default, all social programs would see a delayed or even reduced benefits. Automatic ga recession vasthundhi. 

 

Republicans are trying hard so that Biden does not get elected. If Biden agrees to all republican demands, we will have a mild or medium recession.

[Manishican]

Looks like very high chances of debt default