The Fed Hits the Panic Button and Slashes the Fed Funds Rate

Source: Cobden Centre
by Ryan McMaken

“During the post-FOMC press conference today, Fed Chaiman Jerome Powell repeatedly tried to take an upbeat tone about the state of the US economy explicitly stating — in his own words — ‘the US economy is in great shape’ and ‘the labor market is in solid condition.’ Yet, if one looks closely, one will not find a case of the FOMC slashing the target interest rate by 50 basis points when the economy ‘is in great shape.’ On the contrary, a 50 bps (or larger) cut to the target rate tends to come just a few months before recession and a rising unemployment rate.” (09/24/24)

https://www.cobdencentre.org/2024/09/the-fed-hits-the-panic-button-and-slashes-the-fed-funds-rate/