The Economist: Why the federal reserve has gambled on a big interest-rate cut
The Federal Reserve's recent half-point rate cut marks a critical shift in monetary policy. It reflects confidence in controlling inflation, now near its 2% target, but rising concerns about the labour market. This preemptive move aims to cushion the economy amid slowing growth. However, political risks loom as the decision precedes the presidential election, potentially drawing criticism. Chair Jerome Powell emphasized that the cut was timely and aimed at preventing future economic weakness.
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From The Economist, published under licence. The original article can be found on www.economist.com
© 2024 The Economist Newspaper Limited. All rights reserved.
The Economist
The bold move carries economic and political risks
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