Why the Federal Reserve is split on the future of interest rates
Jerome Powell began with a big cut. What comes next?
A single dissent on the Federal Reserve’s interest-rate committee garnered plenty of attention last week. Understandably so. It marked the first time since 2005 that a Fed governor had opposed a rate decision. Michelle Bowman’s disagreement highlighted concerns that a half-percentage-point cut might be excessive for an economy yet to vanquish inflation. Nevertheless, her 11 other voting colleagues all supported the cut—an indication of near-total unanimity on where the Fed should set rates today.
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This article appeared in the Finance & economics section of the print edition under the headline “Hammer and tongs”
Finance & economics September 28th 2024
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From the September 28th 2024 edition
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Germany’s economy goes from bad to worse
Things may look brighter next year, but the relief will be short-lived
An economics Nobel for work on why nations succeed and fail
Daron Acemoglu, Simon Johnson and James Robinson tackled the most important question of all
Why investors should still avoid Chinese stocks
The debate about “uninvestibility” obscures something important
China’s property crisis claims more victims: companies
Unsold homes are contributing to a balance-sheet recession
Europe’s green trade restrictions are infuriating poor countries
Only the poorest can expect help to cushion the blow
How America learned to love tariffs
Protectionism hasn’t been this respectable for decades