The purpose of a rate cut is generally to stimulate economic activity when the economy is WEAK or facing a serious threat — like when it was reduced to less than 0.15% after the financial collapse of 2008, for example.
That’s traditional economic theory. Remember what Reagan said about economists? “An economist is someone who see something working in actual practice and wonders if it would work in theory”.
We are in a new paradigm - a paradigm the economy hasn’t been in for decades.
Did yo see AOC taking to the fed chairman about the Phillips curve? I agree with what she was saying, and it matches what Trump says over and over. Pretty amazing. Watch this;
https://www.youtube.com/watch?v=hSfFtFrT5_E