Navigating the Fed's Rate Cuts

This chapter explores the Federal Reserve's recent decision to cut the federal funds rate by half a percent in light of shifting inflation and labor market dynamics. The discussion critiques the effectiveness of such interventions while emphasizing the complexities of managing economic outcomes, highlighting historical patterns that question the Fed's influence on inflation. Additionally, it examines future economic scenarios, specifically projections for the federal funds rate and the challenges of balancing employment with price stability.