Historically reactive, the central bank is finally trying to get ahead of a potential crisis.
This time a year ago, the federal funds target rate was 2.25% and Federal Reserve Chairman Jerome Powell was intent on raising it to 3% while continuing to shrink the size of the central bank's balance sheet. The massive disruption in the credit markets that followed not only thwarted his aims and catalyzed the "Powell Pivot," but continues to dictate monetary policy even now.
Economists and academics have debated Powell's motive for lowering interest rates and whether expanding the Fed's