Capital Markets: Observations and Insights Autumn 2019
The Good, the Bad, and the Ugly
The Ugly – Thinking About the Next Recession
• When the next recession eventually comes, will the Federal Reserve have enough ammunition to stimulate the economy? ‒ Experience in Japan and Europe has shown that it is difficult to stimulate economies with interest rates around the zero bound
Cut in Federal Funds Rate Around U.S. Recessions
Does the Fed have enough firepower?
1989-1992 2001-2003 2007-2008
Source: FactSet and Alger.
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