Federal Reserve poised for first rate cut of the year, possibly a quarter-point reduction

WASHINGTON (TNND) — The Federal Reserve on Wednesday might make its first rate cut of the year, which most economists believe will be a quarter of a percentage point.

Steve Moore, who is President Donald Trump’s former White House economic advisor, said he agrees it will be a quarter-point reduction.

It’s the day Donald Trump has been waiting for — and a lot of investors, as well,” Moore told The National News Desk’s Jan Jeffcoat during a one-on-one interview Wednesday morning.

The cut, he said, will provide a small stimulus for the U.S. economy.

I think Wall Street and Washington overrate the power of the Feds to guide the economy,” he said. “But it is something Trump has been agitating for for a long time. He calls [Federal Reserve Chair Jerome] Powell ‘too late Jerome’ because he wanted this rate cut a long time ago.”

Fundamentally, Moore said, the U.S. has a healthy economy.

“I was just looking at the GDP report by one of the Federal Reserve Banks that are predicting 3% growth for the third quarter, as well,” he said. “So, despite some problems with grocery prices, we’ve got a pretty healthy economy right now.”

For more, watch the video player above or visit The National News Desk’s YouTube channel for Jeffcoat’s full interview with Moore.