Why central bank rate cuts will be at a slower pace than rate hikes were

A snippet from UBS on Federal Reserve Chairman Powell testifying to Congress later in the week:

  • Recent Fed speakers have tended to suggest a slower pace of rate cuts than was the case with rate increases.
  • This is logical— rate increases were taking policy from an emergency setting to neutral, and then overtightened. Rate cuts are designed to keep real interest rates more or less stable.


This article was written by Eamonn Sheridan at www.forexlive.com. Source