Federal Reserve Board Chairman Jerome Powell holds a press conference following a two-day meeting of the Federal Open Market Committee on interest rate policy on September 18, 2024 in Washington, USA.
Tom Brenner | Reuters
Federal Reserve Chairman Jerome Powell said Wednesday’s larger-than-expected interest rate cut could have only a limited impact on the race between Vice President Kamala Harris and Donald Trump because the impact of the decision would be slow to trickle down to the economy.
“The things we do tend to have a lagged impact on economic conditions,” Powell said at his press conference in response to a reporter’s question about the timing of the long-awaited interest rate cut, just 48 days before the Nov. 5 election.
The Fed announced its decision on Wednesday to cut the benchmark interest rate by an aggressive 50 basis points. It is the first cut since March 2020 and represents a milestone in the US economic recovery from the pandemic.
Both Harris and Trump are trying to portray themselves as the best candidates for a healthy U.S. economy, as the high cost of living is consistently cited as a top issue in national polls.
“We have just reached an important moment: Inflation and interest rates are falling while the economy remains strong,” President Joe Biden wrote in an X-post following the announcement.
This is a developing story. Check back later for updates.
