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Authors:

  • Gabriel Chodorow-Reich

Excerpt

August 8, 2024, Opinion: "Financial markets have suddenly begun to price in the risk of a U.S. recession. The S&P 500 closed on Wednesday down almost 7 percent from one month ago, with nearly all of the decline concentrated in the past few days.  Where should the Federal Reserve go from here? Given the surprise increase in the unemployment rate and the reaction of financial markets, it seems safe to assume that policymakers wish they had reduced rates at last week’s meeting. But the failure to do so need not be costly, and correcting it does not require an emergency meeting and a rate cut."