When the IRS cuts interests rates, what is the best way to invest money?

Answer 1

The IRS collects taxes, it does not change interest rates.

When the Fed (Federal Reserve Bank) cuts interest rates, you would generally want to shift your investments to more risky investments like the stock market. The thinking is savings accounts and such have such low rates of return that you're more willing to accept greater risk in hopes of better returns. Generally, a rate cut happens to encourage people/businesses to spend money to stimulate the economy.

When the Fed raises interest rates, the intention is to slow the economy and get people to save more. By raising interest rates, the Fed assumes people will be more interested in saving their money or investing in things like government bonds because they now have a higher rate of return.

Much of what happens in our economy hinges on what the Fed does with interest rates. That's why Alan Greenspan (chairman of the Fed for 18 years) was often considered the most powerful man in American.

Answer 2

You mean the FED. IRS only collects taxes and checks up on it. It all depends how much money you have and how long you can stay without that money. The house market and construction is bad. In theory when the interest rates go down its a good time for you to borrow money to open something or to give that extra money for a good return. Right now I would only invest in stock that has been around for a while. Microsoft, Apple, Intel, its a good idea to throw some money on Apple, Sony, Microsoft now at the end of the year because of holiday buying so a short term 1000 dollars of stocks for about three months can return you 50 to 80%. But you got to know what your doing.

Answer 3

I'm sorry,but it's the Federal Reserve that cuts the interest rate. The IRS simply collects it,lol.

Answer 4

The IRS doesn't set interest rates - the Fed does.

Answer 5

The IRS is the Internal Revenue Service. They have nothing to do with Interest rates.

You must mean the Fed.

Answer 6

IRS does not set, raise or cut interest rates.

Answer 7

When rates are cut, watch the stock market. or real estate
when rates fall real estate be comes easier to qualify for.

Answer 8

When the "FED" cuts interest rates at the FOMC meeting, the best way to invest your money is;

Carefully............................


I suggest you spend the next year or two reading everything you can on investing...................................