![]() The Fed’s sharp 1.75 percentage-point hike in interest rates in 19 has slowed the economy and may even tip it into a recession. Without swift action by the Fed, unemployment is likely to rise by at least one to two percentage points, if the economy follows the pattern of previous recessions. Given this history with past recessions, the Federal Reserve should reduce interest rates by at least two to three percentage points within the next year. In each of the past two recessions, the Fed cut real interest rates by five to six percentage points before unemployment began to decline. ![]() FED UP The Federal Reserve must lower interest rates now to avoid a recession, rising unemploymentĭespite its half-percentage-point interest rate cut on January 3, 2001, the Federal Reserve must quickly make even deeper cuts to lessen the damage it has done to the economy. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |