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

[PAF]

Mises Wire
Ryan McMaken
09/18/2024


The Federal Reserve’s FOMC slashed the target federal funds rate at its meeting this month, reducing the target rate by 50 basis points from 5.5 percent to 5.0 percent. This was the largest cut to the target rate since March of 2020 in the midst of the Covid Panic.

This cut comes after fourteen months of the FOMC holding the target rate at 5.5 percent. In late 2022, the FOMC was forced to allow interest rates to rise in response to mounting price inflation which hit a year-over-year growth rate of 8.9 percent in June 2022. Since the official CPI inflation rate fell back below five percent in Spring of 2023, however, there has been continuing speculation about a “Fed pivot” in which the Fed will once again begin a cycle of cuts to the target interest rate.



The rest of the article, with charts and graphs, is here:

https://mises.org/mises-wire/fed-hit...fed-funds-rate

[Madison320]

I think they timed it pretty good for Harris (I should say, The Machine). The market will get an immediate bump but prices won't start skyrocketing until after the election.

I think whoever gets elected is going to be dealing with an economic disaster. If you thought price inflation was high in 2021, just wait.

[Matt Collins]

https://www.youtube.com/watch?v=crW7xS8mEQ0

[Madison320]

https://www.youtube.com/watch?v=crW7xS8mEQ0

This time is different because they're cutting rates when the threat of price inflation is at an all time high. Previously they had room to cut because inflation pressure was much lower than it is now.