Speaking on Fox Business Network's “Kudlow” show on Wednesday, Breitbart News economics editor John Carney said the Fed should have waited until after the election to cut interest rates, and that announcing a 50 basis point cut now would force the Fed to do the same thing in November.
Carney said:[T]They should have waited until November. There is no economic theory that asserts that cutting rates in September will change the course of the country's economy rather than waiting until the next meeting the day after the election in November. The other danger of this 50 basis point cut is what happens if Donald Trump gets elected and they decide to cut rates by 25 basis points in November. Guess what will happen? It will look like they stimulated the economy for former President Kamala and then decided to not be as restrictive if Donald Trump gets elected. So they are actually committing themselves to a series of 50 basis point cuts and they don't realize it. “This is not a set path. Don't think this is the new path forward,” Powell said. “This is the new path forward, especially if Donald Trump wins in November. Because you can't say that under former President Kamala, we thought a big cut was a good thing, but under Trump, we have to scale it back. That would be political chaos.”
Carney later added that the expected increase in the longer-term federal funds rate “signals a worsening underlying inflation problem, which is driven by government overspending.”
to follow Ian Hanchett's Twitter Ian Hanchett
