Jerome Powell, the unflappable Federal Reserve chair, would never march into a press conference, declare victory over inflation and drop the mic while giving a middle finger to his haters. That’s not his style.
But in his own way (very demure, very mindful) that is what happened Wednesday when he announced the Fed’s first rate cut in four years, a giant half-point reduction that will lower the cost of borrowing and offer financial relief for consumers and businesses.
“Our patient approach over the past year has paid dividends,” Powell said, in perhaps the most understated boast ever uttered by a public official. (And even then, he toned it down later, noting: “We’re certainly not saying ‘mission accomplished’ or anything like that.”)
Powell said, “We’re not serving any politician, any political figure, any cause, any issue, nothing. It’s just maximum employment and price stability on behalf of all Americans.”
Of course, that’s unlikely to stop either party from using the rate cut news to their advantage, given that the economy is the No. 1 issue for Americans going to the polls on November 5. Harris can hold it up as a capstone achievement for the Biden presidency after inheriting an economy wrecked by the pandemic. Trump can continue to claim that a rate cut is a sign the economy is weak.
