Former President Trump said Wednesday that the Federal Reserve's decision to cut interest rates is a sign that the economy is in trouble or that the central bank is playing “political games.”
Ahead of a planned rally on Long Island, President Trump stopped by a self-described Bitcoin bar called Pub Key in New York City.
The former president and his sons announced details of a new cryptocurrency platform earlier this week as they have become increasingly embracing digital currencies after years of skepticism.
During his visit, the former president was asked about the Federal Reserve's 50 basis point interest rate cut earlier in the day, the central bank's first rate cut after a two-and-a-half-year battle with rampant inflation in the wake of the pandemic.
“Assuming they're not playing politics, I think a cut this big is an indication that the economy is very bad,” Trump said. “Either the economy is very bad or they're playing politics. But it was a big cut.”
The new federal funds rate will be 5% to 4.75%, and the cut signals the Fed's confidence that the fight against inflation is nearing an end.
The Federal Reserve gradually raised interest rates from near zero in March 2022 to a range of 5.25% to 5.5% last July to combat rising inflation, which peaked at 9.1% in June 2022.
Former President Trump and his campaign focused on a message of frustration with high prices and the economy, so some Trump supporters have expressed frustration with the Fed's decision, which comes less than 50 days before the election.
“Today's announcement is good news for Americans who have borne the brunt of rising prices, but I remain focused on our efforts to keep prices down,” Vice President Harris said in a statement Wednesday. “I know prices are still too high for many middle class and working families, and my top priority as President will be to lower the cost of everyday necessities like health care, housing and food.”
