Monetary Policy & Inflation | US
Is the Fed Actually in the Middle of an Easing Cycle?
- By Bilal Hafeez
- 2 min read
All eyes are on the Fed tonight and we have given our take on what to look out for. But here’s a completely different angle. What if rather than a Fed hiking cycle, we are actually in the midst of an easing cycle! Bear with me. Remember the Fed had started to cut rates in 2019. Policy rates went from 2.5% to 1.75% (upper bound of Fed funds).
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It’s a very good way of looking at it. The C19 response took CBs well off a normal path.
Thx – yes. It’s such an unusual period, that the traditional start/end of business/Fed cycle doesn’t make as much sense.