As we noted in our newsletter yesterday, recent data releases have provided ample evidence of a slowdown in the U.S. economy, as well as a slowdown in nominal wage growth. Given these slowdowns occurred with inflation already below the Federal Reserve’s long-run target of 2 percent, today’s decision to cut short-term interest rates by a quarter-point makes lots of sense. The Fed should be applauded for trying to stay ahead of the curve in fostering continued growth.
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