Trump keeps hammering Fed over rate cut: 'It was a political move'

Published On Sep 20, 2024, 10:36 AM

Donald Trump has criticized the Federal Reserve for its recent decision to cut interest rates by half a percentage point, claiming it is a politically motivated move to support the current administration ahead of the upcoming election. Trump argues that such a significant rate cut indicates weakness in the economy under President Biden. The Fed, however, maintains that the rate cut was a necessary step to sustain economic growth and stabilize the labor market. Fed Chair Jerome Powell insists that the decisions made by the Fed are not influenced by political pressures.

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Stock Forecasts

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Negative

The market might react negatively to the political framing of the Fed's actions, as Trump’s remarks could foster uncertainty about future Fed policies. Additionally, if investors perceive the economy as weak due to the rate cut, it may lead to a bearish outlook on market performance.

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