People say the interest rate cuts take a few months to take effect on the economy.
I’d have to agree.
After the first major cut about 6 months ago, only last month did the Taiwan Dollar gain about 7% on the US Dollar.
The RMB has gained 10% in 12 months, but most of that in the last 6 months too.
Following the latest rate slashing extravaganza we probably won’t see inflation really pick up until the summer.
And since very few rates for consumer spending are lower I fail to see how the Fed has done anything but make everyone feel okay for a little while longer.
It’s like an airplane plummetting towards certain death where the pilot assures everyone “everything’s okay folks”. Everyone celebrates for 5 minutes until they realize the ground is that much closer.
