Trump Had This Hot Take about the fed Rate Cut

On his way to a rally taking place on Long Island, presidential hopeful Donald Trump had some interesting remarks to make about the recent Federal Reserve interest rate cut decision.

The former President said that the central bank is playing politics and that the cut demonstrates a problematic economy. These comments were made at a Bitcoin bar named Pubkey in New York City. Trump and his family are pushing hard the idea that if elected, his administration will be very much pro Bitcoin.

At the stop, one of the questions posed to Trump was what he thought about the 50 basis points interest cut the Fed made earlier that day. This marked the first time in more than two years that the Fed cut rates, as the central bank had been holding out for reduced inflation before making the decision.

Trump continued on by saying, “It was a big cut.” His take is that the economy must be in a bad spot for a cut of that magnitude, unless the Fed is simply playing politics and trying to appease a party. Trump has constantly attacked the Biden administration over the state of the economy since Trump left office, and he vows to fix things if elected again.

Democratic Nominee Harris Chimes In

While speaking on the interest rate cuts, Vice President Kamala Harris said on the cuts focus will be “on the work ahead to keep bringing prices down.” She said the cuts were certainly welcome news for Americans who have been waiting for them for some time, and that they are a step in the right direction. “Prices are still too high,” she said, particularly for the middle and working class families. Her aim is to bring down prices on groceries, housing, and healthcare as President.

The cuts bring the federal funds rate down 4.75%-5.0%. The cuts coming at this time mean that the Fed sees some progress being made with inflation and has confidence that the rates will continue to drop.

The last time the rates moved was back in 2022, when the Fed increased them to 5.25%-5.5%. That was in response to a historically high inflation rate of 9%. Inflation has now come down to 2.50%.