If US economic growth is so good, then why does the Fed need to cut interest rates?
That was essentially the question put to Federal Reserve Chair Jerome Powell recently after a speech in Dallas. It would be more constructive to examine the premise — why is growth so good? — and ask what the Fed and others can do to keep it that way.
Real GDP is on track to exceed its pre-pandemic trend for the second straight year. Typically, the Fed might worry that strong growth is a sign that the economy is in danger of overheating, but not ...