
Declining Interest Rates and the Five Faces of the Fed
In recent months, financial markets seem stuck in a repetitive cycle: analysts closely watch US economic indicators to gauge the timing of the Fed's interest rate cuts. This represents the "macroeconomic" face of the Fed. Yet, there are at least four other faces that need attention: the political and bureaucratic ones, followed by the psychological aspect, and not forgetting, albeit last, the financial. Last March, the Fed confirmed its decision to maintain the maximum level of the benchmark interest rate at five hundred and fifty basis points, as decided eight months prior. This phenomenon is ...