Case for Cutting Rates Can Be Found in Close Calls of the 1990s

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Case for Cutting Rates Can Be Found in Close Calls of the 1990s
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Fed officials at their meeting this week are set to weigh whether trade tensions and a recent hiring slowdown might warrant action

The Federal Reserve usually cuts interest rates because bad things are happening. Sometimes, though, it cuts rates because the risk of bad things has gone up—like taking out an insurance policy.

That’s how some analysts characterize the current case for cutting rates, and they cite 1995 as the parallel. Back then, the Fed lowered rates in time to prevent an economic slowdown from turning into a recession.

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