New York CNN —So we finally got a rate cut — and a supersized one at that.
However, a recession started immediately when the Fed cut rates in July 1990 and just two months after it cut in January 2001.
Unemployment rate: generally risesOn average, for those six cycles, the unemployment rate rose by 1.4 percentage points a year after the Fed cut rates.
For instance, a year after the Fed cut rates in July 1995, the unemployment rate was unchanged at 5.5%.
In the other four instances, the unemployment rate was at least a percentage point higher a year after the Fed cut rates.
Persons:
Jerome Powell, it’s, Michelle Bowman
Organizations:
New, New York CNN, Fed, Consumer
Locations:
New York, stoke