Fed Cuts Interest Rates By Half a Point
The Facts
The Federal Reserve on Wednesday cut benchmark interest rates by half a percentage point — 50 basis points — to the 5% to 4.75% range in the face of softening inflation and a potential slowdown in the labor market.
This is the first time the central bank's Federal Open Market Committee (FOMC) cut rates by as much as half a point since 2008 outside of emergency rate cuts made during the COVID-19 pandemic.
The Spin
The Biden-Harris economy is well on its way to a full recovery. The Fed needed to normalize interest rates after their huge fall, and this rate cut will help the economy stick the landing and avoid a recession. This should sway more voters away from former Pres. Donald Trump to VP Kamala Harris.
Aside from the Fed breaking tradition by cutting rates so close to Election Day — possibly influencing the outcome of the election — this giant cut shows how poorly the Biden-Harris economy is doing. The economy needed this jolt just to show any sign of life, but it's not enough to help the average Americans.
