The Fed's Rate Cut Is Just the Excuse We Need

Far from upending the policy landscape, the Federal Reserve's emergency interest-rate cut Tuesday encourages Asian officials to keep at it. Rates have been coming down across the region for the past year, first because of the trade war and now thanks to the coronavirus. Feet were already on the gas pedal; the Fed merely gives local central banks cover to accelerate.

The race toward zero borrowing costs — save Japan, which was already there — is on, and there’s no going back. That’s in large part because policymakers were already on the road . Inflation is well below target in many countries. China, the region's patron, was in a long-term economic slowdown before the virus hit. Now, its performance this quarter is likely to be the worst ever. There's little appetite for rates to climb, even after the virus is contained. I'm not hearing many people call the current steps temporary.