Even September may be too late for a rate cut to swing the U.S. economy out of a recession, warns former Fed president

6 comments

1. The system was built to cycle.

2. Inflation is still above target. Unemployment is low. The economy is growing steadily. Idk wtf Bill Dudley is talking about, but being wrong again and again hasn’t stopped years of “imminent recession” forecasts

3. personally think he’s right. feds usually late to the party as it is. we’re still feeling the effects of the rate hikes and any cuts won’t be felt for a while. they should get out in front of this

4. So how’s the economy both robust and booming and yet needs a rate cut to prevent a recession?

5. Nah. You been preaching recession for three years.

6. It takes 6 months to a year for any interest adjustment to have real impact (not stock market reactions).

   This lag is why it is difficult to achieve a soft landing. They are making adjustments on data that already has a lag, and the adjustment itself have another lag before it takes effect.