by Peter Schiff
Schiff Sovereign
The Fed Chairman was flush with praise yesterday over the stupendous state of the US economy.
The economy is in a “good place”, he told reporters at a press conference after announcing a 50-basis point (0.5%) interest rate cut. The labor market is “strong”. Inflation is “coming down”. They’re “confident” about the future outlook. Basically, everything is awesome.
But at least a handful of reporters noticed the obvious paradox: if the economy is doing so great, then why are you slashing interest rates?
Typically, central bankers only cut interest rates when the economy is weakening… which certainly doesn’t conform to the Chairman’s effervescent outlook.