“The Economy Looks Solid, but the Fed Plans to Cut Rates Anyway…”

“…The Federal Reserve is planning to cut rates at its policy meeting at the end of the month even though the United States economy, by most available evidence, is doing perfectly fine.

It appears, based on a close reading of Fed Chair Jerome Powell’s own words, to be something deeper than just a tactical response to the latest economic data. It is instead an effort to apply the lessons of the last decade of sluggish global growth and low inflation to Fed policy. It is about accepting a new normal…”