Tomorrow, the Fed is about to embark on its next rate cut cycle. And unlike in previous cycles, the Fed starts fighting economic weakness with much less ammunition than ever before. Typically, as the US economy has headed into recession, the Fed had to cut interest rates by 500bps to 600bps. Given the current starting point of the Fed Funds Rate that would take us down to -300bps, something that seems impossible to achieve without a run on cash.
Could interest rate cuts lead to lower growth?
Could interest rate cuts lead to lower…
Could interest rate cuts lead to lower growth?
Tomorrow, the Fed is about to embark on its next rate cut cycle. And unlike in previous cycles, the Fed starts fighting economic weakness with much less ammunition than ever before. Typically, as the US economy has headed into recession, the Fed had to cut interest rates by 500bps to 600bps. Given the current starting point of the Fed Funds Rate that would take us down to -300bps, something that seems impossible to achieve without a run on cash.