Housing Highlights the Promises—and Limits—of the Fed’s ‘Insurance’ Rate Cuts

When Federal Reserve officials started cutting interest rates over the summer, they framed the moves as akin to taking out insurance for the economy—steps aimed at providing some support at a time of rising risks.

Related Story: Fed Cuts Rates a 3rd Time This Year but Signals Likely Pause

The policy makers are likely to approve a third consecutive rate reduction at their meeting this week to provide a bit more protection. They also will consider whether to signal a timeout on additional cuts in part because of the improvements they have seen so far.