Experts Urge Fed, Greg Ip, to Cut Rates Now, Citing Data Dependence and Forecast Trust

Joseph Brusuelas@joebrusuelas

2 years ago

A timely note on why the Fed Should Cut Rates Now—Not Wait Until September via ⁦@WSJ⁩ ⁦@greg_ip⁩. My estimate of the Fed’s reaction function implies the policy rate is 150 basis points above what the appropriate rate should be. Too restrictive. https://t.co/RUJ1Zh2m6t

"But if the Fed were truly data-dependent and trusted its own forecast, it would be comfortable cutting interest rates now. At a minimum, the option should be actively debated at its meeting in two weeks. A cut does bring risks, but so does waiting." --@Greg_Ip, @WSJ https://t.co/j0LFxUy5Od

David Wessel@davidmwessel

2 years ago

.@greg_ip joins the-Fed-should-cut-in-July chorus. https://t.co/KWlivPeCdO via @WSJ