Over the past 50 years, the US Federal Reserve (Fed) has implemented 7 interest rate reduction cycles. On average, each cycle lasted 26 months and reduced interest rates by 6.35 percentage points…
The infographic below analyzes the impact of interest rate cuts during and after these cycles on the economy and financial markets.
Interest rates are a powerful tool that the Fed uses to stimulate economic activity. Typically, when the US economy slows or enters a recession, the agency responds by lowering interest rates. As a result, interest rate cuts often occur during or around recessions.
Source: VnEconomy
