The Fed is set to cut rates for the first time in 4 years. What does that mean for your money?
CBSSEP 4 2024
US Fed Cuts Interest Rates By Half a Point
Above: Fed Chair Jerome Powell on Sept. 18, 2024 announces an interest rate cut. Image copyright: Anna Moneymaker/Staff/Getty Images News via Getty Images
The Spin
Democratic narrative
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.
Republican narrative
Aside from the Fed breaking tradition by cutting rates so close to Election Day — possibly influencing its outcome — this giant cut actually 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 American.