The Federal Reserve is walking a fine line with its current stance on interest rates. Over the past two years, the Fed has kept rates above the neutral level, echoing mistakes that led to past economic downturns.
đž In 2008, delayed rate cuts fueled the recession.
đž In 1929, similar policies contributed to the Great Depression.
Today, even as inflation stabilizes, the Fed's caution could have serious repercussions. With the labor market flashing warning signs â layoffs are up, hiring is down, and wages are stagnant â the question is: Will the Fed act in time?
The stock market may seem strong, but history teaches us that it doesnât always predict the future. We could be on the verge of another major economic correction.
Stay informed and prepared.
#InterestRates #EconomicCrisis #FedPolicy #RecessionRisk
