The US Federal Reserve’s decision to lower interest rates by 25 basis points at the end of July 2019 is the first cut since the height of the financial crisis in December 2008. In its announcement, the Fed cited weaker global growth, elevated policy uncertainty and low inflation as justifications for cutting interest rates. 

In episode 12 of The Flip Side podcast, Jeff Meli, Head of Research, and Michael Gapen, Chief US Economist, debate the wisdom behind the Fed’s reasoning and timing for this rate cut, while addressing whether this action goes far enough to maintain relatively strong levels of economic activity. The analysts also weigh in on the political implications of the decision and potential risks to the Fed’s credibility and independence.