Trump blasted the Fed: A 50 basis point cut is just to keep someone in power!

Trump said the 50 basis point cut was politically motivated and aimed at helping someone win reelection in the general election. He pointed out that this radical move far exceeded the market's expectation of 25 basis points, reflecting the Fed's improper judgment at a time of high inflation, not only failing to raise interest rates in a timely manner to curb inflation, but also cutting interest rates sharply when the economy was not obviously weak.

Trump's accusations further exacerbated the market's doubts about the independence of the Fed. He threatened many times to intervene in the Fed's policies if he won the election and threatened not to let Powell stay. However, the Fed emphasized that its decisions are based on economic data and consumer interests, independent of political influence.

Market analysts believe that the Fed's decision to cut interest rates, although unexpected, may reflect concerns about potential weakness in the labor market and an early response to the global economic slowdown. However, this move undoubtedly adds more uncertainty to the election, and voters' anxiety about the economic outlook may increase.

The White House tried to downplay the political color of the rate cut, emphasizing that it is a signal of economic recovery. However, as the election approaches, economic issues have become the core of the campaign. Trump and Harris have tried their best to show their advantages in economic governance, but the attacks and accusations against each other make it difficult for voters to judge who will truly lead the United States to prosperity.

In this game of politics and economy, every decision of the Federal Reserve has attracted much attention, and its independence and fairness are facing unprecedented tests. For ordinary people, they are more concerned about who can truly solve economic problems and lead the country out of difficulties.