“The Fed Makes a Large Rate Cut and Forecasts More to Come”
Jeanna Smialak Writes
“The Federal Reserve cut interest rates on Wednesday by half a percentage point, an unusually large move and a clear signal that central bankers think they are winning their war against inflation and are turning their attention to protecting the job market.”
I (and Brad DeLong) wonder why the Fed forecasts more rate cuts to come instead of implementing them now? I wonder why is an 0.5% cut considered large? The answer to my faux naivety is that it was not clear until yesterday if the rate would be cut by 0.25% or 0.5%. The fact that it was not cut by more than 5% was not news and not reported.
The not naive question of why forecast cuts rather than
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