Jerome Powell announced a 0.5% cut to the Fed Funds rate, bringing it down to 5.00%. While this move surprised some, I had anticipated it for several reasons. Powell was quick to clarify that the decision was not influenced by any political factors. If you’ve followed my posts, you’ll know I strongly doubt that claim (refer to my attached post below from 9/1 for more on this). That said, there are valid economic reasons for such a large rate cut, so I’ll give him a partial pass on the political front—particularly given the uncertainty around the employment situation.
That’s my perspective—what’s yours?
