No, Donald, Fed Rate Cut Not "Political Move to Sabotage My Campaign."
A Desperately Predictable Attempt to Undermine Positive Economic News that's bad for his campaign.
The Federal Reserve yesterday made first rate cut since 2020, opting for a more aggressive 0.5-point reduction rather than the expected 0.25-point cut. This move, widely seen as positive for the economy, was quickly met with baseless accusations from Donald Trump, who claimed that the decision was politically motivated. Trump wasted no time in attempting to delegitimize the Fed’s decision, saying, “This is a political move to sabotage my campaign.” But this claim falls flat when considering how the Federal Reserve actually operates and why this decision is far from political. Trump’s attempt to frame this as a political move shows a fundamental misunderstanding of the Fed’s mission—or worse, a deliberate effort to sow doubt for personal gain.
Trump Appointed the Fed Chief
First of all — Trump himself appointed Jerome Powell as the chair of the Federal Reserve. Powell has led the institution with a steady hand, and despite Trump’s constant public pressure during his presidency to cut rates, the Fed remained independent, making data-driven decisions. This alone undercuts Trump’s current claim that the Fed is acting out of political bias.
How the Fed Works
The Federal Reserve’s Board of Governors consists of 12 members, each appointed by the President and confirmed by the Senate, serving 14-year terms. Of the 12 members, Trump appointed 4, and Biden 3. Yesterday’s rate cut was supported by an 11-1 vote, including Trump-appoitned “yes” votes, showing that this was a near-consensus decision based on economic analysis, not partisanship.
What It Means for the Economy
The Fed’s rate cut signals that inflation is under control, and the economy is likely heading toward a “soft landing”—avoiding a recession while curbing inflation. Job growth has slowed slightly, but this easing in labor markets is expected to balance the economy and support long-term growth. With a 2% growth rate, we’re seeing a healthy economy that is stabilizing after a period of turbulence.
Why Trump Needs to Delegitimize the Good News
Good news for America is bad news for Trump. His entire political survival depends on chaos and fear: bad news about the economy, immigration, crime—anything to keep his base agitated and distracted from his mounting legal troubles. As he faces multiple indictments and potential prison time, Trump knows that a thriving economy, led by a non-political Fed, makes his rhetoric harder to sell. His latest outcry is just another example of his self-serving agenda.
I'm no fan of Powell's -- I think the cut was at least a year late -- but your explanation of how the process works is clearer and more nuanced than anything I've seen in the major papers. Nice work!
I'd point out it is; otherwise, they'll wouldn't have exposed the over $818,000 correction on job numbers. Without admitting they juiced the numbers dramatically, they FED wouldn't have been able to drop the rate. The Harris/Walz campaign aren't performing well so any condition improvement such as this would help them. Gallop polls reference re their performance.