According to a Fox Business report, the Federal Reserve announced interest rate cuts for the first time in four years, raising eyebrows that it may be an attempt to juice the economy before the presidential election.
From Fox Business:
The Fed’s first interest rate cut since March 2020 lowers the benchmark federal funds rate to a range of 4.75% to 5%.
Interest rates had been at a range of 5.25% to 5.50% since July 2023, the highest level since 2001, as the central bank monitored economic data for signs that stubborn inflation was trending toward its 2% target.
Recent months delivered signs of progress that inflation is heading toward the Fed’s target, although the latest data showed it isn’t quite there yet. Inflation slowed to 2.5% on an annual basis in August, down from 2.9% the month before and well below this inflationary cycle’s peak of 9.1% in June 2022.
“It’s a miracle!” said Public Square founder Michael Seifert. “After four years of hiking interest rates, the federal reserve just cut them by 0.5% less than two months before an election. The entire system has moved to election time pandering in order to elect Kamala Harris.”
It's a miracle!
After four years of hiking interest rates, the federal reserve just cut them by 0.5% less than two months before an election.
The entire system has moved to election time pandering in order to elect Kamala Harris.
— Michael Seifert (@realmichaelseif) September 18, 2024
President Biden is already taking a victory lap on X.
“We just reached an important moment: Inflation and interest rates are falling while the economy remains strong. The critics said it couldn’t happen – but our policies are lowering costs and creating jobs. I’ll speak tomorrow about what this means for Americans,” Biden posted.
We just reached an important moment: Inflation and interest rates are falling while the economy remains strong.
The critics said it couldn’t happen – but our policies are lowering costs and creating jobs.
I’ll speak tomorrow about what this means for Americans.
— President Biden (@POTUS) September 18, 2024
This story is developing…
