LendingTree CEO: Federal Reserve rate cut is helpful for businesses
Coronavirus majorly impacting American businesses, Doug Lebda says
LendingTree CEO Doug Lebda believes the American consumer and businesses are going to benefit from the Federal Reserve's emergency interest-rate cut on Monday, which was in direct response to worries that a fast-spreading virus will cause a recession.
"I think the Fed rate cut is helpful for businesses," Lebda told FOX Business' Connell McShane on Monday in Charlotte, N.C.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| TREE | LENDINGTREE | 43.99 | +0.34 | +0.78% |
Lebda, who heads up the largest online lending marketplace in the country, admitted he's talked to business owners who say coronavirus is having "a major, major impact" on them, especially if their companies' supply chains are in Asia. So, in order to ensure the American economy isn't going to slow significantly due to coronavirus fears, Lebda insisted the Fed needed to cut rates.
STOCKS TUMBLE AFTER FED'S EMERGENCY RATE CUT, 10-YEAR TREASURY YIELD BREAKS 1%
"I think the Fed move is right," Lebda said on FOX Business' "After the Bell." "And, I think the consumer can actually benefit from it."
The consumer will profit from the decision for many reasons, Lebda explained, including people financing their student loans, their mortgages and their credit cards.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| SP500 | S&P 500 | 5969.34 | +20.63 | +0.35% |
| I:DJI | DOW JONES AVERAGES | 44296.51 | +426.16 | +0.97% |
| I:COMP | NASDAQ COMPOSITE INDEX | 19003.651134 | +31.23 | +0.16% |
"Consumers are increasingly able to shop and increasingly because lenders are getting more and more automated, it's easier and easier, over the years ... to actually refinance and lower your bar," Lebda revealed.
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Unless the American economy crashes or people start to lose their jobs, Lebda concluded: "The consumer is really the beneficiary" of the Fed's interest rate cut.
Lebda conceded the economy will slow a bit due to coronavirus concerns, but "in general, the U.S. economy is going to be OK."