The Rate Cut Dilemma: A Panic Response or Strategic Move?

Unemployment was the main reason for the FED rate cut of 50bps. This cannot be seen in light of the increase in costs of household items from gas to groceries and the timing of the elections in mind. The American Dream which the Americans had always cherished to call themselves saw this rate cut not less than any panic by insiders inside the Democrat party itself.

How will the Americans as a whole see this rate cut?

We have seen the unemployment rate slipping away, which has almost halved in this administration. The reason is that the administration has been concentrating on its political agenda more than anything else, at least the welfare of its own population. The administration has been extremely slow in reacting to any of its urgent calls despite the urgency of it in the Middle East peace and reconciliation process since October 7th.

Most of the urgent and demanding issues have been manipulated or stalled from foreign to domestic issues and the economy is one of them also. The administration could have resolved or been closer to resolving most of the issues the majority of Americans had been focusing on. Instead, the administration took to the path of vengeance and revenge on its Republican opponents and that is the reason for this panic.

The administration could have eased some of its financial strains but made it easy by throwing the blame on the previous Trump government and has since come up with more left policies with regards to administration and governing adding to the already burden of the economy on average to below average Americans.

From excise to CGT (capital gains tax), and increasing housing costs the administration has not been focusing on the increased burden on Gen Z and the citizens over 65 in the country. The rate cut has not changed anything, instead, it has put more money in the hands of the wealthy to filthy rich Americans in the country and also those living abroad. The rate cut has only changed hands from the bankers to individuals.

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