The Fed is expected to cut short term interest rates in half, to 0.5 percent, today. The danger is the Fed’s credibility could be hurt if they don’t clearly communicate a new strategy of manipulating the supply of money.
At some point the strategy needs to change if the preventive measures & policies aimed at stimulating the economy aren't working.
It will be interesting to see the actions the Fed takes & their communications regarding their future policies.
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