It is unclear whether fine-tuning rates will be enough to revive decade-old expansions
Central banks world-wide are poised to unleash some of the most aggressive monetary stimulus since the financial crisis a decade ago.
But the circumstances are different now, with policies aimed more at breathing life into decade-old expansions rather than at averting an economic collapse. And it is unclear whether the central bankers’ depleted tools will be adequate.
Judy Shelton, Trump’s intended Fed nominee, is calling for a large interest rate cut. She says it should have happened in June.
The U.S. Federal Reserve is poised to put interest rates on a new, downward trajectory in its efforts to support an increasingly fragile economy.
“If the economy falls into a recession, Japan would resort to a large-scale fiscal stimulus with the Bank of Japan effectively financing debt through its yield curve control,”…