Chanticleer
Why no one should be celebrating the Fed’s super-sized rate cut
Having pushed shares to record levels, investors must now ask themselves what an emergency move from the Federal Reserve says about where global markets are heading.
Yes, 105 out of 114 economists can be wrong. And this time, you can’t really blame them.
The vast, vast majority of economists surveyed by Bloomberg before the Federal Reserve’s interest rates decision on Wednesday (Thursday AEST) expected a 0.25 of a percentage point cut. They are now scrambling to explain why Fed chairman Jerome Powell delivered a 0.5 percentage point cut, which brings official US rates to a range of 4.75 per cent to 5 per cent.
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