Caroline Baum: A surprise interest-rate cut by the Federal Reserve could be its best decision

Five months ago, the Federal Reserve invoked “patience” to talk the stock market off the ledge. In the intervening months, that patience has been tested by a downshift in economic growth, both here and abroad; chronic, below-target inflation; and signs that a trade war is hurting business confidence.

When the Fed meets this week on Tuesday and Wednesday, market participants will be listening closely to learn what it would take to try the Fed’s patience and force policy makers to lower interest rates. Don’t hold your breath waiting for any kind of definitive answer, no less any outright action.

Fed Chairman Jerome Powell already laid the ground work with assurances that the Fed is prepared to act to offset the effects of a trade war and slowing global growth.

>>> Original Source <<<