Why the Fed Cut Rates… NY Times

Neil Irwin, NY Times, has a nice piece discussing the Fed move, here… (My bold)…

”So to make sense of what Mr. Powell and his colleagues did, don’t look for some particular data point that persuaded them interest rates were too high, or for an argument that slightly lower borrowing costs will unlock significantly more business investment or consumer spending.

Rather, think of it as a corrective action, aimed at undoing a mistake in 2018.

Unfortunately, that makes forecasting what the central bank will do next particularly tricky — and Mr. Powell’s news conference didn’t help matters.”

And, this:

”This may be less of a communication failure and more of a genuine uncertainty within the Fed over whether to act again in light of solid economic data in recent weeks. Two Fed officials dissented from this week’s rate cut, so Mr. Powell could face a tricky task if he pushes for a further move later in the year.”