The Fed follows up its 0.75% cut in the fed funds rate last week with another 0.50% cut, announced this afternoon. That’s a 1.25% rate cut in little over a week. Is the Fed racing to close the barn door after the recession got out? Sure feels like it. Oh, by the way it’s a presidential election year and the Fed is printing money. Go figure.
Now for some initial reactions from around the web:
WSJ: Economists react – Fed Racing to Tie
FT: Bernanke’s reflation gamble may work too well
Economics back in January 2021 Back in early 2021 there were certain signs that the economy was going to change in some way, and many predicted this change would not be positive. Post Pandemic in January 2021 the U.S. Government continued to pour billions of dollars into the economy by printing more money. Economics 101