[Fed cuts interest rates by 50 basis points, shocking the market! Economic issues heat up again before the election]
The Federal Reserve suddenly announced a 50 basis point interest rate cut on Wednesday. This unexpected easing move set off a huge wave in the market and also added new gunpowder to the US election. Candidate Trump responded quickly, pointing out that this was a signal of the US economic difficulties, and even hinted that the Fed was playing political games to pave the way for someone to govern.
Trump bombarded continuously, saying that the Fed's decision to cut interest rates was too radical, far from the 25 basis points generally expected by the market, and was a "political operation" rather than a wise move. He emphasized that the US inflation was high, but the Fed chose to cut interest rates sharply, and the timing was questionable. Trump also threatened that if elected, he would intervene in the Federal Reserve, and Chairman Powell's position would be in jeopardy.
However, Federal Reserve Chairman Powell insisted that the decision was independent, saying that the interest rate cut was based on economic data and consumer interests, and had nothing to do with politics. The White House interpreted it optimistically, saying that the interest rate cut was a signal of economic recovery.
The election entered a white-hot stage, and economic issues became the focus of the struggle between the two sides. The Sleeping King and the Understanding King have both claimed that they are the best candidates to protect the US economy, but in the eyes of voters, their promises seem to lack sufficient persuasiveness. As the election approaches, every fluctuation in the economic field may become the key to influencing the election.
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