Rate-cutting cycles in recent decades – such as in the early 2000s, or during the financial crisis of 2007 – have tended to be associated with steep economic downturns.
Donald Trump had his own interpretation of the US Federal Reserve’s jumbo interest rate cut last week – and it was characteristically gloomy.
The decision on Wednesday (Thursday AEST) to slash rates by an unusually large half a percentage point, the Republican presidential contender suggested, was indicative of a US economy that was in “very bad” shape.
