Background of Rate Cuts
In the face of a global economic slowdown, the Federal Reserve is under unprecedented pressure. Rate cuts are seen as an effective way to stimulate the economy.
Economic Impact
Rate cuts can lower borrowing costs, boost consumption and investment, but may also lead to rising inflation.
Policy Challenges
When formulating policies, the Fed must balance economic growth with financial stability. While rate cuts can stimulate the economy, they may also cause market volatility.