Fed could worsen the next recession

[Yavin4]

Ricchiuto argues the last three recessions in 1990-91, 2000-2001 and 2007-2009 stemmed from credit bubbles that the Fed inadvertently helped to form through lax monetary policy. It’s about to repeat that mistake again, he said.

A rate cut “will incite undesired risk taking by borrowers and deepen the next recession, which will unnecessarily increase the cost to society,” Ricchiuto told clients in a new research note.

Recessions are becoming deeper, he said, and the economy is taking longer to recover.

https://www.marketwatch.com/story/fed-making-mistake-by-cutting-rates-could-make-next-recession-worse-critic-contends-2019-07-22?mod=mw_theo_homepage

The Fed has created a market culture that feeds off of cheap money. This is not sustainable over the long haul. It encourages over-speculation and devalues the currency.

[Dawson Leery]

1. CNBC cannot say enough of how the Fed must have the stock market's back at all times.

[Yavin4]

2. Another sign that the markets are becoming more of a indicator of Fed moves than

a reflection of the state of the performance of the equities in the markets.

[roamer65]

3. The economy takes longer to recover because there is less of it after each recession.

So goes a dying empire.

Next recession the Fed will resort to negative interest rates.