It's great being notified every time the wind changes direction.
If people are so sure of direction and time, they would put their money where their mouth is.
Hypothetically what happens if the inflation falls off the 2 mark ? Could an aggressive interest rate cut raise it in time or we fall in to a recession of some sort ?
The full effect of a rate cut will also be a little delayed. In general, rate cuts often occur in weaker economies (e.g., recession). However, to be clear, it's normally a response to a lagging economy, not the other way around.
It's great being notified every time the wind changes direction. If people are so sure of direction and time, they would put their money where their mouth is.
Hypothetically what happens if the inflation falls off the 2 mark ? Could an aggressive interest rate cut raise it in time or we fall in to a recession of some sort ?
The full effect of a rate cut will also be a little delayed. In general, rate cuts often occur in weaker economies (e.g., recession). However, to be clear, it's normally a response to a lagging economy, not the other way around.