The Federal Reserve is making a critical error that mirrors a policy mistake from 1929. By holding interest rates too high for too long, the Fed is taking a risk that could lead to severe economic consequences. History has shown us the cost of such delays.
In 1929, the Fed's decision to keep rates elevated contributed to the Great Depression.
In 2008, a similar delay worsened the financial crisis.
Now, in 2024, we're seeing echoes of these past mistakes. Despite inflation stabilizing, the Fed remains cautious, maintaining a restrictive monetary policy that could harm the U.S. economy. Will the Fed act soon enough to prevent another downturn?
🔍 Warning signs:
Increasing layoffs
Slowing job growth
Stagnating wage growth
Stay tuned as we monitor this developing situation.
#FederalReserve #EconomicPolicy #InterestRates #HistoryRepeats