The financial crisis of 2007/2008

The S&P 500 index began to decline around the summer of 2007.
The FED did not cut interest rates until Bear Stearns went bankrupt and BNP Paribas suspended withdrawals from their two funds. Subsequently, the #FED aggressively lowered interest rates, but it was too late, with a series of financial companies going bankrupt one after another.

Fed Chair #Powell is haunted by the era of Paul Volcker, where cutting interest rates too early led to a return of inflation, and the 2007 period where cutting interest rates too late resulted in everything collapsing.

The stock market plummeted for about 1.5 years, hitting bottom around early 2009 before recovering, while the economy took several years to recover.