The Fed should cut next week

ARTICLE - The US economy is growing around trend, unemployment is at its lowest post-recession peak for decades, the housing market is firing on all cylinders - and the financial markets are expecting the Federal Reserve to cut interest rates to a 40-year low of 1.5 per cent next week. Are they mad?

Originally published in the Financial Times UK edition 2 November.

Some seem to think that the sense of gloom is overdone, particularly those hoping that the economy will not lose them votes in next

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