🚨Chamath on why the Fed could keep holding off rate cuts: "The only answer is political."

let's just scenario play yes please what happens if Powell rips in a 100 basis point cut right now I'll tell you so one part which is mathematical is the interest on the debt goes down we save 300 billion but there's something else that happens which is the Fed does control the front end of the curve meaning how do people borrow money for small amounts of time from one day to about two years if you make that cheaper it's a test that's true as time what happens is people borrow more money that fuels more growth that will end up in GDP so what actually happens if you cut rates 100 basis points is not just the 300 but you can get this reflexive positivity in the economy what that

allows you to do is even if that causes a little bit more inflation you're actually growing yourself out of this whole thing if the numerical justification is there to lower rates and it has all of these other positive externalities for the United States economy why don't I do it the only answer is political