UBS On-Air: Paul Donovan Daily Audio 'An emergency cut without an emergency'

The US rate-cutting cycle began with a 50bp cut—the sort of move normally reserved for an economic emergency. The US has near full employment, steady consumption, and rising real wages. This is no economic emergency. It is not plausible to claim Federal Reserve Chair Powell knows something economists do not (especially after yesterday’s press conference). The fact that a Fed governor dissented for the first time in 19 years helped reduce the impression of panic.