With the benefit of hindsight, the 50-basis-point cut in September was a mistake, though not one of great consequence,” said the former treasury secretary and Harvard preside

Contingency planning for possibility of rising inflation and interest rates will help businesses respond to changes fast and calmly—better than dithering or panicking.

The coronavirus has wreaked havoc on the economy, and in an emergency response, the Federal Reserve slashed interest rates by a full percentage point—the second rate cut in two weeks and the largest in Fed history.

In September 2024, Jerome Powell announced the first Federal Funds Rate cut in over four years. The Federal Funds Rate is a short-term rate related to the cost of debt in the American economy. Some expected the Federal Reserve to cut only 25 basis points,