**Cutting rates could be a mistake unless the goal is to postpone a crash by creating an inflationary bear market.**
đ¶ **Market decline, but no crash**: Lower rates might prevent an immediate crash, but commodity speculation could inflate prices.
đ¶ Similar to the Fedâs actions in **2000 and 2007**, this could delay a crash but worsen the eventual recession.
đ¶ **Inflationary bear markets**: Cutting rates may lead to slow market declines driven by inflation, rather than a sharp crash.
đ¶ **Delaying the inevitable** could result in more severe economic problems down the road.
This approach may seem to buy time, but it risks making the eventual downturn far more painful.
#EconomicPolicy #InterestRates #FedBeigeBook #FOMC #BinanceTurns7
