The Fed cut interest rates again. Has the economy really improved?
Yesterday, the Fed announced that it would cut interest rates to 4.75%, lower than market expectations. This is the first rate cut since 2022.
On the surface, this seems to be good news. But should we really cheer for this?
The hidden worries behind the rate cut:
Inflationary pressures remain
The job market may be overheated
The risk of real estate bubbles is increasing
The trend of dollar depreciation may intensify
Some people think this is a sign of economic recovery, but there are also views that this may be to stimulate the upcoming election.
What do you think? Is this rate cut a sign of economic improvement, or is it to cover up deeper problems?
Feel free to share your views in the comments section. Remember, in the financial world, appearances are often deceptive.