Another Downturn Would at This Point Be Devastating

Another Downturn Would at This Point Be Devastating
AP Photo/Manuel Balce Ceneta, File


Go back one year. On June 13, 2018, the FOMC voted to raise the federal funds range by another quarter percent. By every account in the mainstream, this was consistent with how we were told the economy was progressing. The labor market was on fire and so was the economy, they said. Two months earlier, the Wall Street Journal wrote:

“About a quarter of economists surveyed by The Wall Street Journal now expect Federal Reserve Chairman Jerome Powell to pursue a more aggressive pace of interest-rate increases than his predecessor, Janet Yellen, following U.S. moves to cut taxes and boost government spending.”

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