{"id":110779,"date":"2024-10-05T19:22:11","date_gmt":"2024-10-05T12:22:11","guid":{"rendered":"https:\/\/hotvideos24.online\/?p=110779"},"modified":"2024-10-05T19:22:11","modified_gmt":"2024-10-05T12:22:11","slug":"fed-made-mistake-slashing-rates-by-half-a-point-larry-summers","status":"publish","type":"post","link":"https:\/\/hotvideos24.online\/?p=110779","title":{"rendered":"Fed made &#8216;mistake&#8217; slashing rates by half a point: Larry Summers"},"content":{"rendered":"<p> <script async src=\"https:\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js?client=ca-pub-3711241968723425\"\r\n     crossorigin=\"anonymous\"><\/script>\r\n<ins class=\"adsbygoogle\"\r\n     style=\"display:block\"\r\n     data-ad-format=\"fluid\"\r\n     data-ad-layout-key=\"-fb+5w+4e-db+86\"\r\n     data-ad-client=\"ca-pub-3711241968723425\"\r\n     data-ad-slot=\"7910942971\"><\/ins>\r\n<script>\r\n     (adsbygoogle = window.adsbygoogle || []).push({});\r\n<\/script><br \/>\n<\/p>\n<div>\n<aside class=\"single__inline-module alignleft wp-block-nypost-editor-partner-article-links\">\n<\/aside>\n<p>Former US Treasury Secretary Larry Summers says September\u2019s better-than-expected jobs report shows the\u00a0<a href=\"https:\/\/nypost.com\/2024\/09\/18\/business\/fed-slashes-interest-rates-by-half-a-percentage-point-in-bid-to-avert-slowdown\/\">Federal Reserve\u2019s half-point rate cut<\/a>\u00a0was \u201ca mistake.\u201d<\/p>\n<p>Following the Labor Department\u2019s report that employers <a href=\"https:\/\/nypost.com\/2024\/10\/04\/business\/us-economy-added-254k-jobs-last-month-blowing-past-forecasts\/\">added 254,000 jobs in September<\/a> \u2013 well above the 140,000 gain that was predicted by LSEG economists \u2013 and the\u00a0unemployment rate\u00a0declined slightly from a month ago to 4.1%, Summers took to social media to weigh in on the central bank\u2019s actions.<\/p>\n<p>\u201cToday\u2019s employment report confirms suspicions that we are in a high neutral rate environment where responsible monetary policy requires caution in rate cutting,\u201d the famed economist wrote. \u201cWith the benefit of hindsight, the 50 basis point cut in September was a mistake, though not one of great consequence.\u201d<\/p>\n<p>\u201cWith this data, \u2018no landing\u2019 as well as \u2018hard landing\u2019 is a risk the @federalreserve has to reckon with,\u201d he continued. \u201cNominal wage growth remains well above pre-COVID levels and it does not appear to be decelerating.\u201d<\/p>\n<p>Analysts at The Kobeissi Letter noted that the latest jobs report beat expectations for the first time since May, and posed the question of whether the central bank\u2019s 50-basis point cut was too aggressive.<\/p>\n<p>According to the outlet, markets saw nearly a 50% chance of a 50-basis point cut next month ahead of the latest jobs report, but after the jobs report, the odds of a 25-basis point interest cut in November surged to 93%.<\/p>\n<figure class=\"wp-block-image aligncenter size-large\"><button class=\"button button--modal-trigger\" aria-label=\"Open the image in a modal.\" data-modal-image=\"33506389\"><br \/>\n\t<svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"icon-plus\" fill=\"#fff\" viewbox=\"0 0 1033 1000\" width=\"1em\" height=\"1em\"><path d=\"M380 364V0h273v355h380v290H653v355H380V645H0V355h380v9z\"\/><\/svg><br \/>\n<\/button><br \/>\n<img loading=\"lazy\" style=\"aspect-ratio:1.5983050847458;display:block\" decoding=\"async\" data-modal-image=\"33506389\" width=\"943\" height=\"590\" src=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2024\/10\/pictured-interview-session-part-globe-58184100.jpg?w=1024\" alt=\"Larry Summers\" class=\"wp-image-33506389\" srcset=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2024\/10\/pictured-interview-session-part-globe-58184100.jpg?quality=75&amp;strip=all 4800w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2024\/10\/pictured-interview-session-part-globe-58184100.jpg?resize=300,188&amp;quality=75&amp;strip=all 300w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2024\/10\/pictured-interview-session-part-globe-58184100.jpg?resize=768,481&amp;quality=75&amp;strip=all 768w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2024\/10\/pictured-interview-session-part-globe-58184100.jpg?resize=1024,641&amp;quality=75&amp;strip=all 1024w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2024\/10\/pictured-interview-session-part-globe-58184100.jpg?resize=1536,962&amp;quality=75&amp;strip=all 1536w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2024\/10\/pictured-interview-session-part-globe-58184100.jpg?resize=2048,1283&amp;quality=75&amp;strip=all 2048w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2024\/10\/pictured-interview-session-part-globe-58184100.jpg?resize=878,550&amp;quality=75&amp;strip=all 878w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2024\/10\/pictured-interview-session-part-globe-58184100.jpg?resize=744,466&amp;quality=75&amp;strip=all 744w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2024\/10\/pictured-interview-session-part-globe-58184100.jpg?resize=576,361&amp;quality=75&amp;strip=all 576w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2024\/10\/pictured-interview-session-part-globe-58184100.jpg?resize=440,276&amp;quality=75&amp;strip=all 440w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2024\/10\/pictured-interview-session-part-globe-58184100.jpg?resize=424,266&amp;quality=75&amp;strip=all 424w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2024\/10\/pictured-interview-session-part-globe-58184100.jpg?resize=180,113&amp;quality=75&amp;strip=all 180w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2024\/10\/pictured-interview-session-part-globe-58184100.jpg?resize=107,67&amp;quality=75&amp;strip=all 107w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2024\/10\/pictured-interview-session-part-globe-58184100.jpg?resize=112,70&amp;quality=75&amp;strip=all 112w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2024\/10\/pictured-interview-session-part-globe-58184100.jpg?resize=200,125&amp;quality=75&amp;strip=all 200w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2024\/10\/pictured-interview-session-part-globe-58184100.jpg?resize=231,145&amp;quality=75&amp;strip=all 231w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2024\/10\/pictured-interview-session-part-globe-58184100.jpg?resize=322,202&amp;quality=75&amp;strip=all 322w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2024\/10\/pictured-interview-session-part-globe-58184100.jpg?resize=664,416&amp;quality=75&amp;strip=all 664w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2024\/10\/pictured-interview-session-part-globe-58184100.jpg?resize=96,60&amp;quality=75&amp;strip=all 96w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2024\/10\/pictured-interview-session-part-globe-58184100.jpg?resize=87,54&amp;quality=75&amp;strip=all 87w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2024\/10\/pictured-interview-session-part-globe-58184100.jpg?resize=234,147&amp;quality=75&amp;strip=all 234w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2024\/10\/pictured-interview-session-part-globe-58184100.jpg?resize=150,94&amp;quality=75&amp;strip=all 150w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2024\/10\/pictured-interview-session-part-globe-58184100.jpg?resize=50,31&amp;quality=75&amp;strip=all 50w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\"\/><figcaption>Former Treasury Secretary Larry Summers said September\u2019s better-than-expected jobs report shows the\u00a0Federal Reserve\u2019s half-point rate cut\u00a0was \u201ca mistake.\u201d <span class=\"credit\">Boston Globe via Getty Images<\/span><\/figcaption><\/figure>\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\">\n<div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">Today\u2019s employment report confirms suspicions that we are in a high neutral rate environment where responsible monetary policy requires caution in rate cutting. With the benefit of hindsight, the 50 basis point cut in September was a mistake, though not one of great consequence.\u2026<\/p>\n<p>\u2014 Lawrence H. Summers (@LHSummers) <a href=\"https:\/\/twitter.com\/LHSummers\/status\/1842214555562258679?ref_src=twsrc%5Etfw\">October 4, 2024<\/a><\/p><\/blockquote>\n<\/div>\n<\/figure>\n<figure class=\"wp-block-image aligncenter size-large\"><button class=\"button button--modal-trigger\" aria-label=\"Open the image in a modal.\" data-modal-image=\"33506416\"><br \/>\n\t<svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"icon-plus\" fill=\"#fff\" viewbox=\"0 0 1033 1000\" width=\"1em\" height=\"1em\"><path d=\"M380 364V0h273v355h380v290H653v355H380V645H0V355h380v9z\"\/><\/svg><br \/>\n<\/button><br \/>\n<img loading=\"lazy\" style=\"aspect-ratio:1.5;display:block\" decoding=\"async\" data-modal-image=\"33506416\" width=\"885\" height=\"590\" src=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2024\/10\/federal-reserve-board-chairman-jerome-89940008.jpg?w=1024\" alt=\"Fed Chair Jerome Powell\" class=\"wp-image-33506416\" srcset=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2024\/10\/federal-reserve-board-chairman-jerome-89940008.jpg?quality=75&amp;strip=all 2668w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2024\/10\/federal-reserve-board-chairman-jerome-89940008.jpg?resize=300,200&amp;quality=75&amp;strip=all 300w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2024\/10\/federal-reserve-board-chairman-jerome-89940008.jpg?resize=768,512&amp;quality=75&amp;strip=all 768w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2024\/10\/federal-reserve-board-chairman-jerome-89940008.jpg?resize=1024,683&amp;quality=75&amp;strip=all 1024w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2024\/10\/federal-reserve-board-chairman-jerome-89940008.jpg?resize=1536,1024&amp;quality=75&amp;strip=all 1536w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2024\/10\/federal-reserve-board-chairman-jerome-89940008.jpg?resize=2048,1366&amp;quality=75&amp;strip=all 2048w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2024\/10\/federal-reserve-board-chairman-jerome-89940008.jpg?resize=878,585&amp;quality=75&amp;strip=all 878w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2024\/10\/federal-reserve-board-chairman-jerome-89940008.jpg?resize=744,496&amp;quality=75&amp;strip=all 744w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2024\/10\/federal-reserve-board-chairman-jerome-89940008.jpg?resize=720,480&amp;quality=75&amp;strip=all 720w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2024\/10\/federal-reserve-board-chairman-jerome-89940008.jpg?resize=576,384&amp;quality=75&amp;strip=all 576w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2024\/10\/federal-reserve-board-chairman-jerome-89940008.jpg?resize=457,305&amp;quality=75&amp;strip=all 457w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2024\/10\/federal-reserve-board-chairman-jerome-89940008.jpg?resize=440,293&amp;quality=75&amp;strip=all 440w, 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https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2024\/10\/federal-reserve-board-chairman-jerome-89940008.jpg?resize=84,56&amp;quality=75&amp;strip=all 84w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2024\/10\/federal-reserve-board-chairman-jerome-89940008.jpg?resize=105,70&amp;quality=75&amp;strip=all 105w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2024\/10\/federal-reserve-board-chairman-jerome-89940008.jpg?resize=200,133&amp;quality=75&amp;strip=all 200w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2024\/10\/federal-reserve-board-chairman-jerome-89940008.jpg?resize=231,154&amp;quality=75&amp;strip=all 231w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2024\/10\/federal-reserve-board-chairman-jerome-89940008.jpg?resize=322,215&amp;quality=75&amp;strip=all 322w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2024\/10\/federal-reserve-board-chairman-jerome-89940008.jpg?resize=600,400&amp;quality=75&amp;strip=all 600w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2024\/10\/federal-reserve-board-chairman-jerome-89940008.jpg?resize=661,441&amp;quality=75&amp;strip=all 661w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2024\/10\/federal-reserve-board-chairman-jerome-89940008.jpg?resize=90,60&amp;quality=75&amp;strip=all 90w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2024\/10\/federal-reserve-board-chairman-jerome-89940008.jpg?resize=87,58&amp;quality=75&amp;strip=all 87w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2024\/10\/federal-reserve-board-chairman-jerome-89940008.jpg?resize=150,100&amp;quality=75&amp;strip=all 150w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2024\/10\/federal-reserve-board-chairman-jerome-89940008.jpg?resize=50,33&amp;quality=75&amp;strip=all 50w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\"\/><figcaption>Jerome Powell\u2019s Fed cut interest rates by a half-percentage point last month. <span class=\"credit\">REUTERS<\/span><\/figcaption><\/figure>\n<p>Labor attorney Eric Beane, a partner at Foundation Law Group, told\u00a0FOX Business\u00a0that he disagrees that the 50-point cut was a mistake, because the reason for the higher cut was to deal with the slowing in the labor market and an increase in unemployment filings.<\/p>\n<p>\u201cThe hope is that, now\u00a0that inflation\u00a0is under control, we want to deal with the other side of the Fed mandate and make sure that we\u2019re not tanking employment,\u201d Beane said,\u201d adding, \u201cI think further cuts \u2013 probably more measured than a half-point \u2013 are what\u2019s going to be necessary to prevent there being a significant decline in employment moving forward.\u201d<\/p>\n<\/p><\/div>\n<p><script async src=\"\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><br \/>\n<br \/><script async 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Reserve\u2019s half-point rate cut\u00a0was \u201ca mistake.\u201d Following the Labor Department\u2019s report that employers added 254,000 jobs in &hellip; <a href=\"https:\/\/hotvideos24.online\/?p=110779\" class=\"more-link\">Read 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