We aren't supposed to question anything that the Federal Reserve does.  We are just supposed to quietly accept their decisions and move on.  Sadly, most Americans don't even realize that the Federal Reserve has far more power over the economy than anyone else does.  We often talk about the "Biden economy" or the "Trump economy", but the truth is that the Fed is much more responsible for our economic performance than the White House is.  So the fact that the Fed just made an "emergency move" that is normally only reserved for times of crisis should deeply alarm all of us.  Has the Fed made this move for a secret reason that they aren't telling us?

On Wednesday, the Federal Reserve reduced interest rates for the very first time in more than four years…

The Federal Reserve on Wednesday cut interest rates for the first time since March 2020, as the central bank lowered the benchmark federal funds rate by 50 basis points amid progress in the fight against inflation.

The cut was larger than the 25 basis point cut forecast by LSEG economists, though interest rate traders saw a 64% probability of a 50 basis point cut as of Tuesday, according to the CME FedWatch tool. With the 50 point cut, the Fed lowered the target range for the federal funds rate to 4.75% to 5% – down from 5.25% to 5.5%.

It was expected that the Fed would cut rates.

But it was the size of the rate cut that stunned a lot of the experts.

Previously, the only times that the Fed has cut rates by more than 25 basis points has been during moments of crisis.

The last time this occurred was during the early days of the COVID pandemic, and prior to that we had not seen it happen since the financial crisis of 2008…

Outside of the emergency rate reductions during Covid, the last time the FOMC cut by half a point was in 2008 during the global financial crisis.