, Columnist
Welcome to the ‘Yes, But’ Cycle of Rate Cuts
Turning points are tough to navigate in real time. It’s a shame central banks are tripping over their message.
Central banks’ nuance is easily lost.
Photographer: Dwayne Senior/Bloomberg
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Three decades ago, economics underwent a revolution that doesn’t get sufficient credit. Instead of shrouding policy shifts in secrecy, central banks began shouting hikes or reductions in interest rates from the rooftops. Moving by stealth in markets was out. Press releases were in. By amplifying their message, officials hoped to steer the public toward their view. With luck, they could also minimize financial ructions.
Today’s crop of policymakers could use some of the same clarity of purpose.