The Federal Reserve finally decided to cut interest rates last Wednesday by one-half of a percentage point and signaled more cuts could be on the way later this year. Markets greeted the long-expected move toward looser money with initial enthusiasm and then “sobered up a touch,” as The Wall Street Journal described it.
The markets would do well to stay sober. The interest rate cut will not undo the damage the Biden-Harris fiscal fiasco has done to the nation’s economy.
Fed Makes Aggressive Interest Rate Cut, Markets React
Fed Chair Jerome Powell emphasized his belief that the economy is in good shape, in a press conference announcing the rate cut. “The U.S. economy is basically fine,” Powell said. “Our intention is really to maintain the strength that we currently see in the U.S. economy.”
Last Tuesday’s report from the U.S. Census Bureau on household income, poverty,…
