Most central banks of the #G10 have started lowering interest rates.
Rates are usually lowered under the following conditions:
1) A clearly visible #EconomicDownturn ;
2) A weak labor market and rising unemployment;
3) A decrease in inflation;
4) Unforeseen market circumstances;
5) Political decisions.
In our case, the rate cut was driven by falling inflation, political factors, and a slowdown in economic growth.
It feels like we are in conditions similar to those that preceded the #2007crisis . How long this "#bubble " will last is unknown. If the situation turns negative, the #FederalReserve may start injecting liquidity into the market, which will lead to a sharp decline in risky assets, but after the stimulus begins, there will be rapid growth.
I don't want to jump to conclusions, so I will follow the cyclical framework and avoid making hasty decisions.
