Hicks: The resurrection of Keynesianism — in a MAGA hat Michael Hicks

AI-assisted summary

The Federal Reserve's recent interest rate cut signals a slowing economy and concerns over current economic policies.

Tariffs and immigration restrictions are contributing to job losses and rising prices for goods.

The author suggests that large federal deficits may weaken the Federal Reserve's ability to influence the economy.

Federal Reserve’s 0.25% interest rate cut, announced Sept. 17, will have little economic effect by itself. The most important aspect of the move is what it tells us about tariffs and the damage MAGA policies are having on the U.S. economy.

The Fed has a dual mandate to keep inflation and unemployment low. It cuts rates when the U.S. economy is slowing and labor markets show significant strain. Those things are happening now.

MAGA policies a