Rate cuts stimulate demand only to the extent they pull forward consumption that would have happened anyway—if someone was going to buy a car in a few months, a rate cut might accelerate the purchase by months, but it doesn't create new demand from those without income to support purchases.
causalpending
Speaker
Steve Van MeterEvidence Quote
“if I'm going to go out and buy an expensive car and rates get cut maybe I was going to wait a few months but hey all of a sudden rates get cut and I was going to buy it anyway so maybe it pulls some demand forward but if I don't have the income to buy it it doesn't matter what a rate cut does”
Created: 8/11/2026, 1:10:41 AM
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