Will U.S. return to easy money era?

Published On Sep 22, 2024, 8:00 AM

The article discusses the recent Federal Reserve decision to cut interest rates for the first time since March 2020, signaling that rates might continue to decline over the next two years. While the current Federal Funds target rate is between 4.75% and 5.00%, projections indicate it could fall below 4%. Despite stock market gains following the cut, Fed Chairman Jerome Powell expressed skepticism about a return to historically low rates, suggesting that the neutral interest rate is likely to be higher than in the past. Inflation concerns remain a potential barrier to easing rates further, as highlighted by dissent from some Fed members.