Trump weighs in on Fed rate cut during stop at Manhattan bitcoin bar
Former President Trump on Wednesday said the Federal Reserve’s decision to cut interest rates showed the economy was struggling, or the central bank was “playing politics.”
Trump made a stop at PubKey, a self-described Bitcoin bar in New York City, ahead of a planned rally on Long Island.
The former president and his sons earlier in the week unveiled details about their new cryptocurrency platform as he has increasingly embraced digital currency after years of skepticism.
The former president was asked during the visit about the Federal Reserve cutting interest rates by 50 basis points earlier in the day. It was the central bank’s first rate reduction following a two-and-a-half-year crusade against inflation that raged in the wake of the pandemic.
“I guess it shows the economy is very bad to cut it by that much, assuming they’re not just playing politics,” Trump said. “The economy would be very bad, or they’re playing politics, one or the other. But it was a big cut.”
The new federal funds rate is 4.75 percent to 5 percent, a cut that signals the Fed’s confidence that its war against inflation is coming to an end.
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The Fed incrementally increased interest rates from near zero in March 2022 to a range of 5.25 to 5.5 percent last July as it battled rising inflation, which peaked at 9.1 percent in June 2022.
Some Trump allies have complained about the Fed’s decision coming less than 50 days before Election Day as the former president and his campaign have focused much of their messaging on high prices and frustration with the economy.
“While this announcement is welcome news for Americans who have borne the brunt of high prices, my focus is on the work ahead to keep bringing prices down,” Vice President Harris said in a statement on 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 costs of everyday needs like health care, housing, and groceries.”
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