Why Rate Cuts Don’t Help Much Anymore
Economist Austin Goolsbee notes:
“It’s not just that the Fed has a “short runway” — that rates are already so low that it is impossible to cut them four or five percentage points in the face of a recession, as the Fed has done in the past. The real problem is that recent experience and new economic research suggest that rate cuts in general may have a more modest impact on the economy now than they usually do.”
Lower Rates Already Hit Housing. They’re Not Helping Much.
https://www.nytimes.com/2019/08/01/business/interest-rates-housing-market.html
The Fed cuts rates for the first time in over a decade: Investors are already hankering for more
The Fed cuts rates for the first time in over a decade: Investors are already hankering for more
https://www.economist.com/finance-and-economics/2019/08/01/the-fed-cuts-rates-for-the-first-time-in-over-a-decade
Fed’s Conundrum: Can Lower Rates Combat Investment Chill
Fed’s Conundrum: Can Lower Rates Combat Investment Chill