Insight - Interest rate cuts are dead. Long live rate cuts

Fed signals: People ride scooters past the Federal Reserve building in Washington. Strong signals from the Fed that US rates will stay near zero for years, and chair Jerome Powell’s advocacy of fiscal brawn, might only encourage more adventurism in Asia. — Bloomberg

INTEREST rate cuts are becoming passe in important parts of Asia. The main game now is the expansion of monetary policy into arenas once considered off-limits for responsible central banks.

While this new approach is quickly gaining adherents, officials would do well to tread carefully.