Staff Reports
President Joe Biden’s economic performance has left many voters with a bad taste in their mouth, revealing the stark truth that most Americans prefer the economic wizardry of former President Donald Trump. It seems Biden’s economic baseline doesn’t exactly stand tall among the polls—why would it? Under his watch, inflation has been more reliable than a morning coffee, and interest rates have shot up like a teenager’s blood pressure during finals week.
However, the Biden administration may find itself smiling after the Federal Reserve announced its biggest interest rate cut in 16 years, which has elicited a chorus of surprise from those who have been watching their wallets. This notable adjustment—half a percentage point—is reminiscent of the direct-to-Great-Depression playbook used back in 2008. It’s the first time in four years that rates have dropped, which, let’s be honest, feels more like a breath of fresh air for debt-strapped Americans than an actual economic renaissance.
THE FED CUTS INTEREST RATES BY 50 BASIS POINTS ▶
Interest rate cuts before the election could be seen as politically motivated. – @RealPNavarro pic.twitter.com/mzh3ynm1LR— Real America's Voice (RAV) (@RealAmVoice) September 20, 2024
Previously, interest rates had been meandering between 5.25% and 5.5% since July 2023, achieving heights not seen since the early 2000s, a time most people would prefer to forget. Those high rates were touted as necessary measures to combat post-pandemic inflation, which, for the record, has stubbornly refused to return to the mystical 2% target. The Federal Reserve’s recent move has dropped the benchmark federal funds rate to between 4.75% and 5%. Will this do enough to correct course? One can only hope.
Jerome Powell, the head honcho at the Federal Reserve, was keen to reassure the public that the economy is actually ‘strong overall.’ He claimed they are on track with “maximum employment” and “stable prices.” It’s doubtful that he’s had a look at the grocery bills parents are bringing home or the gas prices denting wallets across the nation, but it’s a narrative he’s bent on selling. Powell’s statements come across as optimistic as a puppy in a room full of kittens, insisting that the U.S. economy is making “significant progress” despite what common folk might be experiencing.
Some pundits are throwing shade on Powell’s rate cut, and it’s a spicy take that suggests it may not be as innocent as it sounds. Ben Shapiro, a prominent conservative voice, opined that the cut reeks of a political maneuver to boost Kamala Harris for the 2024 election. In a world where politicians appear to be perpetually scheming, this assessment isn’t outlandish. If it’s true that the Federal Reserve aims to keep Trump at bay by ensuring the economic climate looks rosy for Biden, then that’s a tall order indeed. A strategy that finds itself embroiled more in political theatrics than in genuine concern for the American people reflects a desperate attempt to cobble together credibility as the economic landscape remains shaky.
