Conundrum #3: Rate Cuts
The theory says the Fed lowers interest rates, eases its policy and stimulates the economy. Forget for now how that is supposed to work. The question we’re going to answer in our third video is: does it? In other words, let’s take a look at the actual evidence. You might have already noticed no one ever does. Neither officials nor Economists ever bring up past experience. History never seems to find its way into the vast library of mainstream media stories that uniformly love rate cuts.
