Fed’s Powell Says Political Motives Not Behind First Rate Cut Since 2020

Federal Reserve Chair Jerome Powell dismissed allegations that the central bank’s first interest rate cut since March 2020 will affect the presidential election in November. The Fed kicked off the easing cycle on Sept. 18 with a half-point cut to the benchmark federal funds rate. Speaking to reporters at the post-meeting press conference, Powell was asked about the timing of the rate cut, which came less than 50 days before voters head to the ballot box, and whether it has political motivations. “This is my fourth presidential election at the Fed, and it’s always the same. We’re always going into this meeting in particular and asking what’s the right thing to do for the people we serve?” Powell said. “And we do that and we make a decision as a group, and then we announce it. And it’s, that’s always what it is, it’s never about anything else.”...