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In a recent interview with Newsmax, Republican presidential candidate Donald Trump condemned the Federal Reserve’s decision to lower its benchmark interest rate by half a percentage point, labeling it “a political move.” This comment comes just weeks before the November elections, marking the Fed’s first rate cut since 2020.
“It really is a political move. Most people thought it was going to be half of that number, which probably would have been the right thing to do,” Trump stated on Thursday, September 19, 2024. He added that the decision aims “to try and keep somebody in office, but it’s not gonna work, because the inflation has been so bad”.
Trump’s remarks reflect his ongoing criticism of the Fed, which he claims has failed to address inflation adequately.
Federal Reserve Chairman Jerome Powell, appointed by Trump in 2018, responded to these criticisms by emphasizing that the rate cut was not politically motivated. “This is my fourth election at Fed; it always remains the same,” Powell explained. He stressed that decisions are made based on what is best for the public and asserted that “overall, our economy is robust”.
Senator Elizabeth Warren criticized Powell for delaying action on interest rates and expressed satisfaction with the current reduction but called for further cuts to address ongoing economic challenges.
Trump’s critique of the Federal Reserve aligns with his broader strategy as he campaigns against President Biden and Vice President Harris. His statements suggest that he intends to leverage economic issues as a key theme in his bid for re-election.
Sources:
[1] https://www.bloomberg.com/news/articles/2024-09-20/trump-decries-fed-rate-cut-as-political-move-that-won-t-work
[2] https://finance.yahoo.com/news/trump-keeps-hammering-fed-over-rate-cut-it-was-a-political-move-143645110.html
[3] https://finance.yahoo.com/news/trump-decries-fed-rate-cut-012142161.html
[4] https://www.cnbc.com/2024/09/19/trump-says-feds-rate-cut-was-political-move.html
[5] https://www.politico.com/news/2024/09/19/trump-attacks-fed-rate-cut-00180068
[6] https://www.reuters.com/world/us/trump-says-feds-rate-cut-was-political-move-2024-09-20/
[7] https://www.usnews.com/news/us/articles/2024-09-19/trump-says-feds-rate-cut-was-political-move
[8] https://www.arabnews.com/node/2572090
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