NOTEBOOK – One Good Read: Why the Fed is cutting rates when the economy looks good
CHRIS CONETZKEY Jul 29, 2019 | 8:16 pm
<1 min read time
117 wordsBanking and Finance, Business Record Insider, The Insider NotebookThe Fed is expected to cut rates on Wednesday for the first time in more than a decade. This Wall Street Journal piece takes a look at why: “Federal Reserve Chairman Jerome Powell is leading his colleagues to cut interest rates this week for the first time since 2008, even though the economy looks healthy, partly because it isn’t behaving as expected. Both inflation and market-determined interest rates are still lower than some of their models would have forecast, given years of strong hiring and solid economic growth. These developments suggest that Fed officials haven’t been providing as much support to the economy as they had thought, even though their benchmark rate is low by historical standards.”