Mid-Week Review (September 19th): The "Is This Economy a Joke?" Report
The Federal Reserve has implemented a significant rate reduction, cutting interest rates by 0.50 percentage points to a new range of 4.75-5.00%. They seem to be playing economic limbo - how low can those rates go? This marks the first rate cut since 2020, with the Fed claiming inflation is under control at a CPI of 2.5%. Meanwhile, unemployment stands at 4.2%, spelling doom for the booming "how to find a job" seminar industry. However, this big rate cut brings new challenges, including the need to reassess the "neutral rate" – that mythical number with the same credibility as a politician's campaign promises. The Bank of England is also preparing to announce its interest rate stance, adding to the global economic suspense. In contrast, Turkey's central bank is maintaining its policy rate at 50% as the Turkish lira continues to perfect its impression of a graceful skydiver, minus the parachute.