Once the economy rolls over into recession, the Fed will cut rates 500 basis points cumulatively (despite recent comments about higher-for-longer), as this is the historical pattern in recessions regardless of inflation conditions; Paul Volcker cut rates 1,200 basis points during double-digit inflation in the early 1980s.

forecastpending

Speaker

David Rosenberg

Evidence Quote

they cut rates 500 basis points, irrespective of what your view is on inflation...Paul Volcker had double-digit inflation. The guy cut rates in the early '80s by 1,200 basis points.

Source

DoubleLine Round Table Prime, 2023 - Part 1: Macroeconomic State of Play 1-4-23DoubleLine Capital
Created: 8/11/2026, 1:33:48 AM

My Notes

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