Interest Rate Policy in Focus: Why the Fed Is Considering Rate Cuts

Current discussions about the monetary policy of the US Federal Reserve raise intriguing questions. After Jerome Powell, the Chairman of the Federal Reserve, recently gave a speech in Dallas, a central topic was addressed: Why is the Fed considering interest rate cuts at a time when US economic growth looks so promising? More interesting than the question of the interest rate cut, however, is the consideration of what lies behind the solid growth of the economy and what measures are necessary to maintain this trend. A closer look at the fundamental economic conditions could help promote long-term stability and secure the current positive development.