How The U.S. Economy Stacks Up To Past Rate Cut Cycles?

[rainman + 252]

Spooked by a global economic slowdown, the U.S. Federal Reserve is seen launching on Wednesday its fifth interest rate-cutting campaign since 1995. It will come despite many signs of strength in the U.S. economy. Policymakers at the U.S. central bank have made clear they think the nation’s labor market looks pretty solid. Some have said the Fed may cut rates just once this time. A so-called insurance cut might be just enough to reduce the risks of recession, which have grown because of the Trump administration’s trade war with China and a slowdown in economies across Europe, Asia and Latin America.
How does recent data on the U.S. economy compare to what was happening ahead of the rate-cutting campaigns that started in 1995, 1998, 2000 and 2007? Reuters agency made a an excellent scan...

https://www.reuters.com/article/us-usa-fed-history/that-bad-how-the-u-s-economy-stacks-up-to-past-rate-cut-cycles-idUSKCN1UO0ES

 

[Pavel + 380]

It's headed for a worse recession than the last one. Rate cuts now will only make the recession worse later....

[pinto + 290]

Just because it works today says nothing on its consequences for the future...

[BALBOA + 37]

It's hard to claim that this is the "greatest economy in history" when it can't even handle a 3% interest rate.... But. This is just a continuation of the last 11 years...

[joze44 + 38]

2 minutes ago, BALBOA said:

It's hard to claim that this is the "greatest economy in history" when it can't even handle a 3% interest rate.... But. This is just a continuation of the last 11 years...

I agree.. The economy cycle is back again because nothing was fixed after 07/08... nothing and then the economy was completely built upon QE and fractional reserve banking... this is an absolute recipe for disaster

[francoba + 93]

Let us remember: the unemployment rate remained at 3.6 percent in May, and the number of unemployed persons was little changed at 5.9 million....

[joze44 + 38]

You need to look at labor force participation rates. And it does not matter if everyone has a job if the compensation they receive is worthless. CoL has dramatically increased notably in the most important areas such as healthcare and housing. But yes people got a 3% raise in pay when their housing has gotten 10% more expensive year over year ....

[damirUSBiH + 327]

Good for the Dow...