The Truth About Interest Rate Cuts

"Jerome Powell has finally done it, the Federal Reserve just announced its first rate cut, pivoting its monetary policy from the tightening, restrictive stance we’ve seen over the past 2 years, to a cycle of rate cuts, easing monetary policy and stimulating the economy.

Since 1990 there have been 4 official US recessions and each came shortly after the Fed began cutting interest rates but there have been 8 rate cut cycles in that same period, only 4 of them were followed by a recession.

That’s because there isn’t just 1 reason why the Fed cuts interest rates, there’s actually 4, so to understand what might happen to the stock market or the economy in the current rate cut cycle, we need to understand the circumstances that surrounded the previous ones.

TIMESTAMPS
INTRO 0:00
RECESSIONS AFTER RATE CUTS 1:11
2024 CUTS ARE DIFFERENT 3:57
AN ANOMALY 5:21
2024 IS LIKE 2002? 7:00
RECESSION OR SOFT-LANDING? 9:03
STOCK MARKET RETURNS AFTER CUTS 11:10
"