The Fed interest-rate cut is the right move — unless it triggers more inflation
Peter Morici
The challenge: Keep interest rates low enough for the U.S. economy to expand, but not so low as to overheat labor markets
Published:
Federal Reserve Chair Jerome Powell is overseeing the beginning of the end of the sharpest U.S. central-bank tightening cycle since former Fed Chair Paul Volcker whipped inflation in the early 1980s.
Investors now are wondering how quickly the Fed will lower the federal funds rate. Will it cut at each successive Fed policymaking committee meeting until it accomplishes its long-term target of a 2.8% federal funds rate?