The Fed is likely to cut rates for the first time this year. Here's what that means for credit cards and housing costs.
Business InsiderSEP 17
The Spin
The cautious quarter-point cut reveals dangerous hesitation at a time when the economy desperately needs aggressive action. Job creation has stalled, with employers actually reducing payrolls and nearly a million jobs disappearing from government estimates. The Fed's quarter-point rate cut signals unnecessary intervention, potentially fueling asset bubbles and encouraging reckless borrowing. With inflation stable and unemployment low, the economy doesn't warrant stimulus. This move undermines the Fed's long-term monetary credibility and risks reducing its firepower if a real downturn emerges.
The Federal Reserve's quarter-point rate cut is a timely move to sustain economic growth amid global uncertainties. This measured rate cut demonstrates responsible monetary policy that balances competing economic pressures without reckless overreaction. Lower borrowing costs will stimulate consumer spending and business investment, thereby maintaining a strong job market. With inflation under control, the cut reflects smart, proactive policy aimed at preserving stability without overheating the economy. The Fed correctly prioritized gradual adjustment over populist demands for dramatic moves.
The Fed's quarter-point rate cut isn't just about economics — it's about optics and pressure. It's timing raises eyebrows: economic indicators don't demand urgency, and the Fed risks eroding its independence to maintain short-term political favor. With an election year looming, the central bank is engaging in political maneuvering under the guise of policy. The cut appeases markets and politicians, but sacrifices long-term credibility. It's a move to appease Wall Street, not to stabilize Main Street.
The Controversies
Articles on this story
© 2025 Improve the News Foundation. All rights reserved.Version 6.17.0
© 2025 Improve the News Foundation.
All rights reserved.
Version 6.17.0