Powell says Our economy is in a strong position Has Growth A strong consumer sector with Inflation a bit below target Yep so why powell are you cutting rates 3 times to 1.5% One full blown recession and those 1.5% fed fund rates become 0%. No way now to avoid negative interest rates, actually impossible when the next collapse and economic deep recession comes.
He admitted in his testimony this past week that the Fed made a mistake, and that there is a new normal with today's economy regarding inflation that they did not forsee. And that it does not require rates as high as they were. I think they should have stopped when they went from .25% (which was there for like 6 years? 7? Good ol' Yellen) to 1.00%. That would have been enough, no? There is no NEED for a recession if everything is done with moderation. Slowly. Not knee-jerk OMG panic.