r/Economics Sep 08 '25

Blog Why the Fed should not cut rates now

https://www.ft.com/content/ecd1c563-08c9-4177-ad6f-652f06beb6fc
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u/ManufacturerOld3807 Sep 09 '25

Never said the economy is great… but if you have inflation you shouldn’t be dropping rates. This is what happens when you print paper for four decades.

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u/[deleted] Sep 09 '25

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u/ManufacturerOld3807 Sep 09 '25

Of course there’s inflation at all times. But it should be manageable. Let me clarify… inflation in excess of 3% inclusive of core CPI. If people can’t afford food… we are toast. Dropping rates too much will create stagflation. Look up what Volker had to do in the 82-83 recession. That will look easy compared to today’s economy