Federal Reserve rate cut sparks mixed reactions ahead of election
The Federal Reserve’s decision to cut interest rates for the first time in four years has generated mixed reactions just weeks before the general election.”A reduction in interest is really a breath of fresh air,” said Karissa Warren, a credit card holder.Republican Alabama Sen. Tommy Tuberville called the rate cut “shamelessly political.””I guess it shows the economy is very bad to cut it by that much. Uh, assuming they’re not just playing politics,” said former President Donald Trump, the Republican presidential nominee.Federal Reserve Chair Jerome Powell disagreed with the political accusations.”We’re not serving any politician, any political figure, any cause, any issue, nothing. It’s just maximum employment and price stability on behalf of all Americans,” Powell said.President Joe Biden defended the Federal Reserve’s independence.”I have never once spoke to chairman ever fed since I became president,” Biden said.The president described the rate cut as a moment for greater confidence in the economy, while Vice President Kamala Harris called it “welcome news.”Both parties are attempting to use the announcement to their advantage as the economy remains a top issue for voters.”I don’t think the Federal Reserve’s announcement in and of itself is enough to, let’s say, change somebody’s mind about the current status of the economy or the outlook for 2025,” said Mark Hamrick of Bankrate.com.Powell also noted that there is a lag between the Federal Reserve’s decision to cut or raise rates and its impact on the economy.
The Federal Reserve’s decision to cut interest rates for the first time in four years has generated mixed reactions just weeks before the general election.
“A reduction in interest is really a breath of fresh air,” said Karissa Warren, a credit card holder.
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Republican Alabama Sen. Tommy Tuberville called the rate cut “shamelessly political.”
“I guess it shows the economy is very bad to cut it by that much. Uh, assuming they’re not just playing politics,” said former President Donald Trump, the Republican presidential nominee.
Federal Reserve Chair Jerome Powell disagreed with the political accusations.
“We’re not serving any politician, any political figure, any cause, any issue, nothing. It’s just maximum employment and price stability on behalf of all Americans,” Powell said.
President Joe Biden defended the Federal Reserve’s independence.
“I have never once spoke to chairman ever fed since I became president,” Biden said.
The president described the rate cut as a moment for greater confidence in the economy, while Vice President Kamala Harris called it “welcome news.”
Both parties are attempting to use the announcement to their advantage as the economy remains a top issue for voters.
“I don’t think the Federal Reserve’s announcement in and of itself is enough to, let’s say, change somebody’s mind about the current status of the economy or the outlook for 2025,” said Mark Hamrick of Bankrate.com.
Powell also noted that there is a lag between the Federal Reserve’s decision to cut or raise rates and its impact on the economy.