Too little, too late: the Fed cut interest rates by a quarter point

The United States Federal Reserve reduced the interest rate by 0.25% this Wednesday afternoon, setting it between 4.00% and 4.25%. The measure was approved by the board of governors by a wide majority, with 11 votes in favor and one against. 

Stephen Miram, the new central bank governor who was approved by the Senate earlier this week after being nominated by President Trump, was the only recorded dissenter, arguing that a half-point rate cut would have been the healthiest option for the U.S. economy. 

Trump had advocated a few days ago for a "big rate cut" that ultimately did not materialize. The president had said on Sunday that it would be the ideal time to lower the interest rate, since the country was doing well in every aspect. "Energy is very low, groceries have gone down, everything, almost everything has dropped a lot," he commented. 

Powell doesn't take the blame

According to the Fed's statement, a slowdown in job creation is being observed and inflation "has increased and remains somewhat elevated", adding in the document that "the committee believes that downside risks to employment have increased." 

The head of the monetary entity, Jerome Powell, a fierce anti-Trump figure, has blamed Trump's tariff policy for these new revisions instead of taking responsibility for a rate cut that should have come months ago and that has endangered the country's economy. 

"Higher tariffs have begun to raise prices in some categories of goods, but their overall effects on economic activity and inflation remain to be seen," Powell added at the press conference, whose term ends next year. 

Biden's corrupt economist remains at the Fed

This rate cut is the first that the Federal Reserve has announced since Trump returned to the White House. Inflation has remained around 3%, while the year-on-year rate currently stands at 2.9%, which is above the 2% target of the U.S. central bank, which, despite this reality, refused to lower interest rates throughout the year. 

Last month, Powell's right-hand woman, Adriana Kugler, who was nominated by former Democratic president Joe Biden in 2022, announced that she would leave her position. Her place was taken by the aforementioned Miram, who will continue to serve as economic advisor to the presidency while completing the remainder of Kugler's term in January. 

Meanwhile, Lisa Cook, the economist whom Biden also appointed as a governor of the monetary entity, remains in her position and took part in the vote while facing a judicial process accusing her of having committed mortgage fraud in the past decade.