The Great Fed pivot

In a commentary (kindly refer to the link), Thomas Lam, principal research associate, and David Fernandez, director at the Sim Kee Boon Institute for Financial Economics at SMU, emphasized that the outlook for monetary policy globally, especially in the US, has changed dramatically. But if efforts to prolong the economic cycle lead to greater financial imbalances over time -- prospectively worsening the next downturn -- then the potential costs of this action should be evaluated more carefully. As economists, we are often reminded that there is no free lunch.