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

Powell said the Fed’s policy decisions affect economic conditions with a lag, but if executed correctly, they will significantly benefit the American people.

U.S. Federal Reserve chairman Jerome Powell holds a press conference in Washington on Sept. 18, 2024. Mandel Ngan/AFP

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.