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Seth Golden posted an update 5 years, 3 months ago
After first rate cut in expansion conditions:
a) Real GDP change around rate cuts in expansions (since 1990):
Quarter before rate cut: 2.6%
Quarter of rate cut: 2.4%
Quarter after rate cut: 2.9%The data is similar back to 1971:
Quarter before rate cut: 2.4%
Quarter of rate cut: 2.7%
Quarter after rate cut: 3%
Thanks for the historic info. With stock market indices at all time high, unemployment at all time low, consumer spending high, etc., that this could be the aberration outlier? In the past, rate cuts were executed when we were at the other end of the spectrum, yes?