LIVE: Federal Reserve BLASTS Trump as His Economy Spirals
Federal Reserve Cuts Rates and Pauses Balance Sheet Runoff Amid Conflicting Risks
The Federal Open Market Committee cut interest rates due to rising downside risks to employment, but policy remains data-dependent, with December action not guaranteed. Understand the nuanced balance between softening labor demand and persistent inflation risks stemming from tariffs.
Short Summary
- The FOMC lowered the policy interest rate by 25 basis points, signaling a shift toward a more neutral policy stance.
- The committee also decided to halt the reduction of aggregate securities holdings (balance sheet runoff) starting December 1.
- Downside risks to employment have increased significantly, juxtaposed against inflation that remains elevated versus the 2% target.
- Chairman Powell emphasized that future rate cuts are not predetermined, citing strongly differing views within the committee regarding the path forward.
This briefing details the Federal Reserve's reasoning for recent monetary policy actions—a rate cut and balance sheet normalization adjustment—while facing conflicting signals: cooling but fragile employment versus sticky inflation. Readers gain clarity on the data limitations during the shutdown and the specific risks (like tariffs and AI investment) informing future policy uncertainty heading into December.
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Top Comments (10)
Powell did not sugar coat it, and I'm grateful. Things are bleak right now and the prospects for improvement are sadly tied to trump's deranged belief in tariffs. Powell can only do so much. Trump is killing the economy.
So nice to listen to a competent person discuss a tricky national situation without all the emotional theatrics the current administration hurls out daily. Thanks for the live feed Legal AF.
It’s so refreshing to hear an Administration employee in an important federal role speak professionally, coherently and intelligently with respect for all Americans.🙌🙌🙌🙏🏼🇺🇸
TRUMP'S Fiscal and Trade policies are NONSENSE ‼ ANY Economic expert will tell you that‼
Get rid of this entire Maga administration
A President who accepts that tariffs are taxes on Americans would be useful, also one who isn't a malignant narcissist who acts like they have a brain tumor would be useful for America.
But, but, but... the president said that our economy is roaring! One of the best we've ever had! Someone is LIEING! Who could it be??? 🤔
An intelligent, clear, informative briefing. The first since January. I miss this.
Now that's how a real man talk 😊
I think these are some of the honest best people left in the government!
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Top Comments (10)
Powell did not sugar coat it, and I'm grateful. Things are bleak right now and the prospects for improvement are sadly tied to trump's deranged belief in tariffs. Powell can only do so much. Trump is killing the economy.
So nice to listen to a competent person discuss a tricky national situation without all the emotional theatrics the current administration hurls out daily. Thanks for the live feed Legal AF.
It’s so refreshing to hear an Administration employee in an important federal role speak professionally, coherently and intelligently with respect for all Americans.🙌🙌🙌🙏🏼🇺🇸
TRUMP'S Fiscal and Trade policies are NONSENSE ‼ ANY Economic expert will tell you that‼
Get rid of this entire Maga administration
A President who accepts that tariffs are taxes on Americans would be useful, also one who isn't a malignant narcissist who acts like they have a brain tumor would be useful for America.
But, but, but... the president said that our economy is roaring! One of the best we've ever had! Someone is LIEING! Who could it be??? 🤔
An intelligent, clear, informative briefing. The first since January. I miss this.
Now that's how a real man talk 😊
I think these are some of the honest best people left in the government!