Fed policy has been the biggest drag on the economy

The central bank's expected rate cut is a necessary course correction

The Federal Reserve building.
(Image credit: Illustrated | phochi/iStock, jjgervasi/iStock, pikepicture/iStock, vectortatu/iStock)

The Federal Reserve is widely expected to cut interest rates at the end of its latest meeting Wednesday afternoon. Added to the reduction at the previous meeting in early August, this will be a remarkable course correction for a central bank that, for several years now, was slowly trying to "normalize" rates to a higher level.

It's also a necessary course correction. By all accounts, that "normalization" is the main reason the economy has been slowing down.

Subscribe to The Week

Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

SUBSCRIBE & SAVE
https://cdn.mos.cms.futurecdn.net/flexiimages/jacafc5zvs1692883516.jpg

Sign up for The Week's Free Newsletters

From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.

From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.

Sign up
To continue reading this article...
Continue reading this article and get limited website access each month.
Get unlimited website access, exclusive newsletters plus much more.
Cancel or pause at any time.
Already a subscriber to The Week?
Not sure which email you used for your subscription? Contact us
Jeff Spross

Jeff Spross was the economics and business correspondent at TheWeek.com. He was previously a reporter at ThinkProgress.