The Fed’s October rate cut, its second in two months, marks a firm turn toward easier money. After two years of aggressive tightening, policymakers began loosening policy in September and followed through with another 25-basis-point cut this week. Together, the moves confirm that the central bank is prioritizing growth and employment concerns over stubbornly above-target inflation.
On its own, the move is already significant. But paired with a $38 trillion national debt, it highlights a deeper problem: the government is cutting rates while spending keeps rising. That combination puts the long-term value of paper assets at risk and makes real, tangible assets like gold more appealing.
