Interest Rate Cuts Have Lost Their Power, says Threadneedle

Monetary policy has run out of a steam and any recession is likely to be short and shallow, says Columbia Threadneedle's Colin Moore   

James Gard 13 September, 2019 | 11:17AM

Federal Reserve Jerome Powell

Interest rate cuts have lost their power to have any meaningful effect on economies, according to Columbia Threadneedle’s global chief investment officer, Colin Moore.

A day after the European Central Bank cut rates to record lows, and ahead of meetings of the Bank of England and US Federal Reserve, Moore says the Fed is largely helpless in stopping a US recession occurring: “10 years is long enough to see whether monetary policy can stimulate the economy on its own. It hasn’t happened now, why do we think it will happen going forward?”

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James Gard  is content editor for Morningstar.co.uk

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