, Columnist
Coming Rate Cuts Portend a 1980s-Style Economic Resurgence
Falling borrowing costs will boost large swaths of the economy that have been in recession for nearly two years.
Rate cuts should help.
Photographer: Nathan Howard/Bloomberg
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The key economic question for 2024 is how to think about the interest rate cuts we’re likely to get from the Federal Reserve. Are they good news for the economy as borrowers catch a break, or a sign of impending recession as they were in 2001 and 2007?
There’s still considerable disagreement about the timing and extent of monetary easing given the recent inflation shock, but Fed policymakers clearly signaled in the minutes of their last meeting, released Wednesday, that rate cuts should begin at some point this year.