Why are they cutting rates if the economy is going strong? It seems this is when they would want to increase them so that they have more wiggle room when things are going poorly.
2% GDP is not great. Should be at least 4%. This will help.
“Why are they cutting rates if the economy is going strong?”
FED has tow mandates to reach:
Full employment, 2% core inflation.
Full employment reached.
Core inflation below target at 1.6%.
So, they cut as that will hopefully increase inflation a bit.
Basically, everything is going well and everyone should get on with their lives and stop obsessing over the FED.