President Trump must deal with more than potential adversaries like China, Russia, and Mexico to improve trade for the US. He also has to deal with internal strife, in this case his problems moving interest rates with the Federal Reserve. The President is therefore desperately attempting to gain leverage over the Federal Reserve and the way it makes its monetary policies. He claimed they should cut interest rates by half a point for the short-term during the meeting in May. This plea clearly fell upon deaf ears and the Fed ultimately ignored his request.
In June, one month after the May meeting, the Federal Reserve Board is openly talking about potentially cutting interest rates. Why? Certain actions the president has taken – in particular tariffs or proposed sanctions on China and Mexico – have created economic upheaval. It’s reached the point where the stock market has taken a serious tumble and dropped 7% in about a month.
Trump’s Method for Stabilizing the Economy
How will lower interest rates help stabilize the economy? The current economic outlook and certain factors are beginning to look weak, which is driving the economy lower. Due to the sudden stock market drop, the Fed wants investors to know they’ll cut interest rates to protect the economy. In turn, the market should respond positively and begin to rise in value again.
As far as Trump’s ability to move interest rates without hurting the economy, it doesn’t seem like it’s possible. Every time he takes steps to lower interest rates, he must impose major restrictions like tariffs that scare investors away. Mostly because they feel these sanctions are going to hurt global economic stability overall, at least in the short term.
How Do Donald Trump’s Interest Rate Intentions Affect Future Retirees?
Any time the US president – a/k/a Donald Trump – takes steps to slow the economy; it’s going to negatively impact investments. Over the last month, the stock market has taken a tremendous nosedive. This will continue if President Trump stays the current course or the Fed steps in and lowers interest rates.
You must do everything necessary to protect your investments and stabilize your financial future for you and your loved ones. Remember, the dollar is on the verge of plummeting. It’s best to initiate a gold IRA rollover or open a precious metals IRA if you don’t have one already.
Why precious metals? Simply put, investing in gold and precious metals is a smart way to hedge your bets against economic upheaval. An impending financial disaster is on the horizon right now in the United States. You definitely want to get ahead of it before it crashes down on the unsuspecting people in the United States.
How to Preserve Your Retirement Nest Egg
Owning physical gold in your gold IRA is one of the best moves you can make to preserve your finances. Gold is potentially the most valuable asset on the planet. Countries like Russia and China continue to stockpile and add to their reserves year after year. They fear the economic problems on the horizon for the US and the global economy on the whole.
It’s in your best interest to follow suit by purchasing gold as an investment. Once a precious metals IRA account is in your name working for you, you can begin stockpiling gold. It will hedge your bets against the falling US dollar and the failing US economy.
Remember, gold is accepted legal tender anywhere in the world. And it’s a highly liquid asset that you can easily sell for any currency that you desire. It doesn’t matter if it’s the dollar, the kruggerand, the yen, the yuan, the pound, or another currency.
So do yourself a huge favor and begin learning about gold IRA investing. Even more important, focus your initial research on learning about the top gold IRA custodians in the industry. Or if you prefer, you could always use our favorite recommendation. We’ve already vetted them and determined that they are our favorite out of the bunch.
What Can President Donald Trump Do to Get Fed Officials to Consider Cutting Interest Rates?
As mentioned, many steps that President Trump has taken over the last three or four weeks has Fed officials talking. They see he intends to impose tariffs on Mexico, and he’s definitely in a trade war with China. Creating financial upheaval with global powerhouses is going to hurt the US economy, even if only temporarily.
Think about it. If Donald Trump continues to impose tariffs on China, they will continue to impose tariffs on the US. This means goods purchased from China in the US will cost more than they did in the recent past. The American people will suffer because they’ll have to spend more money than they are typically accustomed to spending.
How Do Retirees Fit into This Picture
As far as retiring goes, this can create serious trouble for retirees on a fixed budget. First, the impending price hikes make it harder for retirees to pay for goods and services. Next, Trump’s overall changes will ultimately hurt their stock market accounts, 401(k)s, IRAs, and other investments. They are counting on these investments to support them in the future.
Seriously consider a gold IRA rollover if you’d like to roll over your current retirement account. Or if you’re just getting started, think about opening a precious metals IRA now. You can begin hedging your bets against the failing US economy and a falling US dollar.
As you can see, Donald Trump is creating temporary economic upheaval for the good of the nation. His goal is to create better trade deals with China and Mexico. The proposed sanctions are temporarily making certain goods and services more expensive and they are negatively impacting the global economy. This in turn is having a negative impact on the US stock market and the US economy.
Keep yourself safe, sound, and financially protected from Donald Trump and his ideas even though the changes are well-meaning. Open a gold IRA account and begin investing in physical gold. It’s the one investment that seems to rise in value when everything else is falling apart all around it.
Take time out of your busy schedule to learn more about investing in a gold IRA. And particularly focus on reading up on the current gold IRA custodians. Choosing the right one is crucial to your investing success.
i do beleive he can smart man at buisness
Hello Edward, I hope he can do it too!
Hi! Thank you for sharing! I didn´t know the economy is this bad! I never invested in gold but I can really see your point and it seems like you know what you are talking about.
I am totally new to this and need all the guidance I can get. I will definitely read about the IRA gold that you write about. Just wondering, how do I know where to start? Any suggestions? Thank you for this post! It was an eye-opener for me!
Hello Ellen! You can read more about a gold IRA here and the first thing to get ready is an investment amount of at least $5,000 in a gold IRA (minimum cash investment amount) or rollover at least $10k (minimum rollover amount) of your current retirement plan. When you’re ready to do that, you can review our List of Top 10 Gold IRA Companies and choose to work with the best. Thank you for dropping by!
This is beneficial to people in America and not so much to the people here in Canada, or maybe people with Dual citizenship of course as well. Of course his ideas and change is “well meaning” but I cant agree more with keeping yourself financially safe and sound. However rigged or not people voted for him for some reason…
Hello Trevor! Indeed, no matter who is the President, it is best to keep yourself financially safe and sound. This is the reason why we recommend investing in a gold IRA for retirement. Thank you for dropping by!
Thank you for pointing out the state of the Us economy at the moment. As a retiree, I am worried that ai will no longer be able to afford to live the way I do at the moment.
As gold is traded in US $ the dollar slipping is surely going to also affect the gold prices
Hello Derek, the devaluing of the dollar is only making gold rise in value more, which is why retirees should seriously consider rolling over their retirement plan or investing in a gold IRA if they have not done so already. Thank you for dropping by!
Great article, I am glad you are discussing this field. I like Donald Trump and I am completely sure he is doing best for his country, he is a great leader. I think that those sanctions will not last enough. I will seriously think about investing in IRA gold, it sounds promising, thank you for sharing.
Hello Daniel, and I hope the best for this country and I hope the best for you as well! Thank you for coming by and I am glad my article was helpful to you!
Wow, lots of ideas in this article.
I agree that a sitting president needs some sort of positive economy to get reelected. And Donald Trump is pressing for lower interest rates, which would assure him of reelection. He has nominated two people for the FED.
Because of global QE from all the G20 countries, inflation is ruining productivity gains, and wiping out any kind of higher purchasing power. More money printed = inflation. Do they have to do that? Yes. Ever since the US government went off the gold standard in 1971, we’ve had monetary policy by the government instead of more responsible fiscal policy. Cheap money, lots of debt. More debt, print more money. Vicious circle and we’ve crossed a bridge of what can be done. And as the US Dollar becomes ever weaker because of QE and loss of reserve currency status, other solutions are being suggested.
George Gilder, global futurist, just came out of retirement with a provocative idea. The world will go back to an asset-based currency,… yep, based on gold and cryptocurrency. Both of these are beyond a government’s ability to corrupt them. Without government manipulation, some sort of sanity will return to the global financial community. An asset based currency will demand that every government forget monetary policy and resort to conducting itself on the more fiscally responsible fiscal policy, balanced budgets, balanced trade in imports and exports. Maybe even end the bloat of redundant and overpaid bureaucracy. This is an interesting notion. Mr. Gilder is advising his readers to put their money into gold and cryptocurrencies for these reasons.
Who will benefit? Wall Street? Main Street? Investors? Savers? Consumers? Who knows. But asset-based money will restore some stability to money, and in turn reduce the turmoil of uncertain global markets and trade. It will bring some stability and comfort to everyday living by reducing uncertainty about jobs and prices.
You idea for Gold IRA is a great one. The rollover idea is good, too. Thing is custodianship. It’s always best to hold some physical gold. Your Crypto IRA is a great idea, too. Now that the NYSE, CBOE are helping institutions and mutual funds to buy into cryptos there will be more tracking and the volatility will ease up. With hedge funds, equity trusts, mutual funds, financial institutions coming into the market and bringing in millions of interested investors, that space will become more stable. We’ve seen people in Zimbabwe and Venesuala resort to cryptocurrencies for their daily money transactions because it takes a Trillion Dollars to buy a breath of air.
Great article. Great service to your readers. I appreciate your efforts.
Thanks for doing you part.
Hello Mike and thank you for the awesome feedback! I just have to let you know, however – with a gold IRA, it is true that you cannot physically hold of all the gold in the IRA as they are held in a depository but you also have the option of taking some of it on your own and (hopefully) leaving it with the local bank in a safety deposit box. Thank you for doing your part with a very well-detailed comment!
I have invested a small percentage of my IRA in gold and over ~5 years which has offered me a 27% negative return. Every day I am looking at a breakeven point so that I can get rid of it because I will not get a tax benefit losing money in IRA account.
Of course, over 35 years, some of my pieces of jewelry can get me some profit if I sell them.
However, the stock market is doing well with President Trump, DOW approaching 27000. People have more money in their savings.
Maybe, if are investing for really longtime diversification of portfolio to few % saving in gold IRA might help. Of course, that is my personal opinion. I will never put anything in one bucket, no matter how lucrative it is.
Hello, Anusuya! Thank you for sharing your experience with us. You are correct that you cannot depend on anything in the short-term, but even in your own experience, gold (even in jewelry) rose up in value in the long-term. Diversification is also important as you mentioned. I do recommend you hold onto your gold IRA, as I believe it will be helpful for you in the long-run. Thank you for the comment and letting us know how your experience with a precious metals IRA went, as well!