The Federal Reserve minutes make it clear that rate cuts are coming (some wanted to cut in July). The Fed is late, and is now going to have to scramble after the decline in inflation, in an undignified manner. Policy operates with a lag, so the economic benefit of these cuts will take some time to come through (policy lags are why “data dependency” is so dangerous). The Jackson Hole summer camp for central bankers gets underway, and between marshmallow roasting and campfire songs there is a chance for some interest economic papers.
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