ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846
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A Rate Cut That Failed to Please

The decision of the United States Federal Reserve to cut short its cycle of interest rate increases and reduce rates, while announcing a halt to its quantitative tightening programme, is likely to restore an environment of excess and cheap liquidity. While justified as a means to strengthen the US recovery, this move would in all probability deliver increased financial speculation rather than higher growth. If that triggers another financial boom–bust cycle, slow growth could be followed by another deep recession.



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Updated On : 12th Aug, 2019

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