Economics: Powell`s Mistake

 (Drivebycuriosity) - Today the Fed made a big mistake. The Federal Reserve Bank cut their interest rate a quarter percentage point. The stock market responded negatively. Dow Jones, S&P 500 and Nasdaq all dropped more than 1% after the Fed announced her decision.

The US economy does not need a rut cut!  President Trump`s trade war seems to harm manufacturing but the much bigger service sector (about 80% of the economy) is mostly unfazed. The whole economy is growing about 2%,  weekly jobless claims are on a record low and salaries & retail sales are growing solidly.


Today`s decision gives a wrong signal. It shows that Powell & Co. are bearish, skeptical for the US economy, which does not encourage investing.