Live Broadcast: President Biden Discusses The Economy Following The Federal Reserve's Interest Rate Cut
The Federal Reserve's decision to cut rates by 50bps yesterday, despite the apparent success of Bidenomics, has raised eyebrows. President Biden will be addressing the nation this afternoon to discuss the state of the economy, the rising cost of living, and slowing wage growth.
President Biden's Address to Business Executives
President Biden is scheduled to speak at a luncheon hosted by the Economic Club of Washington, D.C. today. He will be addressing business executives and is expected to discuss his economic policies.
According to Emel Akan's report in The Epoch Times, President Biden will likely emphasize the progress made since his inauguration, including the United States' response to the pandemic. He is also expected to attribute the inflation surge to Russia's invasion of Ukraine.
White House Chief of Staff Jeff Zients, in a call with reporters on Wednesday, stated, "President Biden is going to speak to a new milestone, inflation and interest rates are falling at the same time, employment, wages, and GDP are rising." He further clarified that this statement is not a declaration of victory but a recognition of significant progress.
Federal Reserve Cuts Interest Rates
The Federal Reserve initiated its first easing campaign since the pandemic on Wednesday, slashing interest rates. The benchmark federal funds rate was reduced by 50 basis points to a range of 4.75 percent to 5 percent after the policy meeting on September 18.
Fed policymakers, in their statement, expressed increased confidence in their ability to manage inflation. They also anticipate another 50-basis-point cut in interest rates this year.
President Biden welcomed the announcement on a social media platform on Wednesday, stating, "The critics said it couldn’t happen—but our policies are lowering costs and creating jobs."
Implications for Consumers and the Economy
The Fed's decision to lower rates for the first time in four years has significant implications for consumers. It affects interest rates on credit cards, auto loans, mortgages, and other financial products, as well as savings accounts.
National economic adviser Lael Brainard discussed the progress made during the call with reporters, stating that the Fed’s decision is a “clear signal that inflation has come back down.” She emphasized the need to sustain the gains achieved but acknowledged that more work is needed to improve labor force participation and reduce costs, particularly housing prices.
Criticism of the Federal Reserve's Decision
The central bank's decision to significantly lower interest rates just before the presidential election in November has drawn criticism from Republicans, including former President Donald Trump. He questioned the timing of the decision, suggesting it might be politically motivated.
Sen. Tommy Tuberville (R-Ala.) also responded to the Fed’s decision, accusing the central bank of political bias.
President Biden is scheduled to address the public here (due to start at 1315ET):
Bottom Line
The Federal Reserve's decision to cut interest rates and its impact on the economy is a topic of much debate. As President Biden prepares to address the nation, it will be interesting to see how he navigates these complex economic issues. What are your thoughts on this matter? Feel free to share this article with your friends and engage in the discussion. Don't forget to sign up for the Daily Briefing, which is available every day at 6pm.
Live Broadcast: President Biden Discusses The Economy Following The Federal Reserve's Interest Rate Cut
The Federal Reserve's decision to cut rates by 50bps yesterday, despite the apparent success of Bidenomics, has raised eyebrows. President Biden will be addressing the nation this afternoon to discuss the state of the economy, the rising cost of living, and slowing wage growth.
President Biden's Address to Business Executives
President Biden is scheduled to speak at a luncheon hosted by the Economic Club of Washington, D.C. today. He will be addressing business executives and is expected to discuss his economic policies.
According to Emel Akan's report in The Epoch Times, President Biden will likely emphasize the progress made since his inauguration, including the United States' response to the pandemic. He is also expected to attribute the inflation surge to Russia's invasion of Ukraine.
White House Chief of Staff Jeff Zients, in a call with reporters on Wednesday, stated, "President Biden is going to speak to a new milestone, inflation and interest rates are falling at the same time, employment, wages, and GDP are rising." He further clarified that this statement is not a declaration of victory but a recognition of significant progress.
Federal Reserve Cuts Interest Rates
The Federal Reserve initiated its first easing campaign since the pandemic on Wednesday, slashing interest rates. The benchmark federal funds rate was reduced by 50 basis points to a range of 4.75 percent to 5 percent after the policy meeting on September 18.
Fed policymakers, in their statement, expressed increased confidence in their ability to manage inflation. They also anticipate another 50-basis-point cut in interest rates this year.
President Biden welcomed the announcement on a social media platform on Wednesday, stating, "The critics said it couldn’t happen—but our policies are lowering costs and creating jobs."
Implications for Consumers and the Economy
The Fed's decision to lower rates for the first time in four years has significant implications for consumers. It affects interest rates on credit cards, auto loans, mortgages, and other financial products, as well as savings accounts.
National economic adviser Lael Brainard discussed the progress made during the call with reporters, stating that the Fed’s decision is a “clear signal that inflation has come back down.” She emphasized the need to sustain the gains achieved but acknowledged that more work is needed to improve labor force participation and reduce costs, particularly housing prices.
Criticism of the Federal Reserve's Decision
The central bank's decision to significantly lower interest rates just before the presidential election in November has drawn criticism from Republicans, including former President Donald Trump. He questioned the timing of the decision, suggesting it might be politically motivated.
Sen. Tommy Tuberville (R-Ala.) also responded to the Fed’s decision, accusing the central bank of political bias.
President Biden is scheduled to address the public here (due to start at 1315ET):
Bottom Line
The Federal Reserve's decision to cut interest rates and its impact on the economy is a topic of much debate. As President Biden prepares to address the nation, it will be interesting to see how he navigates these complex economic issues. What are your thoughts on this matter? Feel free to share this article with your friends and engage in the discussion. Don't forget to sign up for the Daily Briefing, which is available every day at 6pm.
