This is an adapted excerpt from the Sept. 17 episode of “Deadline: White House.”
On Wednesday, Donald Trump got what he wanted: The Federal Reserve announced it would cut interest rates a quarter-point. Stephen Miran, the president’s newest addition to the board, was the only member of the panel to call for a more drastic cut, a half-point drop.
Now, it’s clear why Trump wanted this cut. It will likely make the stock market go up and make borrowing costs cheaper — most people will like that. But the reason the Fed chose to take this step is that there are all sorts of signs that the U.S. economy is slowing down.
In recent months, there have been questions about the independence of the Federal Reserve, but Chair Jerome Powell made it quite clear in a news conference following the announcement that the decision to cut rates was not influenced by the president, but by the economic data.
We’re starting to see a slowdown in the jobs picture. Inflation continues to be a lingering issue. And Trump’s tariffs are impacting businesses; some businesses are eating the costs, which means they’re not out there hiring and building, while others are passing the cost on to consumers.
So while we’re getting the rate cut that so many people wanted, it’s important to remember why: to protect consumers from a slowing economy.
It’s clear the American people are aware of the state of the economy under Trump. A recent Fox News poll found that 52% of voters believe the president is making the economy worse.
In 2024, so many Americans who were unhappy with the economy turned to Trump the Businessman to help. As a candidate, he promised to lower prices on Day 1. So far, he’s done exactly the opposite.
I predict that any attempts by the administration to spread misinformation or to spin news about the economy won’t prove successful. People know how much their lives cost. They know what the rent is. They know what it costs to buy a car. They know what it costs to go to the grocery store. And they know America today is more expensive than it was last year.
This article was originally published on MSNBC.com
