US federal reserve

'Active management can make a difference'

Significantly below expectations

Unemployment at 4.1%

Monetary policy 'turning towards easing'

First rate reduction in four years

Largest cut in four years

US Fed independence at risk

Interest rates at 5.25%-5.50%

Cuts do not happen in 'domestic vacuum'

The euro area and US central banks have applied similar monetary policy tightening over the past 18 months with distinctly different results. We see three key reasons why