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Federal Reserve Meets, Decides To Cut Interest Rates Before 2024 Election

September 18, 2024

US Federal Reserve Chairman Jerome Powell holds a press conference in Washington, DC, on September 18, 2024. The US Federal Reserve cut its key lending rate by half a percentage point on Wednesday in its first interest rate cut since the pandemic, sharply lowering borrowing costs ahead of November's presidential election. (Photo by Mandel Ngan/AFP) (Photo by Mandel Ngan/AFP via Getty Images)

By Brooke Mallory, OAN Staff
Wednesday, September 18, 2024 3:37 PM

The Federal Reserve cut interest rates by half a percentage point at its meeting on Wednesday, satisfying investors who were hoping for a stronger recovery following the worsening employment situation.

“Fed Governor Michelle Bowman was the lone dissenter, preferring a quarter-point cut.” USA Today Reported.

Officials said they decided to take the plunge and cut rates aggressively because a “deteriorating labor market” posed growing risks to the economic expansion.

But the central bank expects further rate cuts totalling just 0.5 percentage points for the rest of the year, signaling that policymakers do not believe the labor market is collapsing.

” [Fed] “We have increasing confidence that inflation is moving sustainably toward 2 percent and judge the risks to achieving our employment and inflation objectives to be roughly balanced,” the Fed said in a statement. “The economic outlook is uncertain, and the Federal Reserve is mindful of risks on both sides of its dual mandate.”

Officials said Wednesday appears to mark the beginning of the end of a long-running overspending nightmare that has affected our daily lives.

The agency claims it is “committed to sustaining strong economic growth” without causing a deep recession.

Previously, some commentators and analysts on cable TV news shows expressed uncertainty about whether the choice would ultimately help the majority of Americans as the Fed continues to work toward its goals.

Since President Joe Biden was elected in 2020, costs like rent, groceries and gas have skyrocketed, along with mortgage interest rates.

Oh, the Fed is slashing interest rates and gas prices are hitting their lowest levels of the Biden administration just before the election.

It's a miracle!!!

— Madison Cawthorn (@CawthornforNC) September 18, 2024

56^Number Republican House Speaker Mike Johnson also commented on the news.

“The Federal Reserve Chairman acknowledged that a massive influx of illegal immigration under the Biden-Harris Administration has caused unemployment to rise. This Administration's refusal to secure the border is actually hurting American workers and the American economy,” Johnson said on X.

The Fed chairman acknowledged that a massive influx of illegal immigrants under Biden and Harris has led to higher unemployment.

This Administration's refusal to secure our border is causing serious harm to American workers and our economy. pic.twitter.com/3rryXkKTAs

— Speaker Mike Johnson (@SpeakerJohnson) September 18, 2024