Even if the Fed drops rates this week by 0.25%, we're still looking at a slow down. And the Federal Reserve insight is, they don't believe it's their job to manage or fix the economy, unlike Alan Greenspan, former Fed chief.
As such, they're not likely to drop rates at all.
I think a 0.5% drop would be necessary to fend off a recession.
Regardless of what they do, we're looking at an economic slowdown for at least five years. If they drop rates to fend off a recession -- NECESSARY -- then we're looking at increased inflation. If they don't drop rates, then there will be a lot of people losing jobs.
As such, they're not likely to drop rates at all.
I think a 0.5% drop would be necessary to fend off a recession.
Regardless of what they do, we're looking at an economic slowdown for at least five years. If they drop rates to fend off a recession -- NECESSARY -- then we're looking at increased inflation. If they don't drop rates, then there will be a lot of people losing jobs.