US Fed Reserve cutting interest rates w/ Professor of Business and Economics Robert MacCulloch from the University of Auckland

Recently, the United States Federal Reserve has cut interest rates by 50 basis points, citing signs of economic slowdown and lowering inflation rates. This decision, although overseas, is heavily connected to New Zealand as almost all state economies are tied to the United States. Following this decision, the Reserve Bank of New Zealand may choose to follow in the same footsteps.

This decision may reduce or slow the current recession, which New Zealand is already in the midst of, worse than the two-thousand and eight financial crisis. However, the odds of igniting consumer price may also increase leading to asset inflation additionally increasing.

Sasha spoke to professor of Business and Economics Robert MacCulloch from the University of Auckland about a deeply complicated issue, which affects all New Zealanders.