"Hesitant to overstimulate the economy amid the looming threat of "somewhat elevated" inflation, but also mindful of two consecutive weak jobs reports, the bank's board voted for a middle path: a 0.25 percent cut to interest rates. That's almost certainly less than Trump would like-he posted on social media over the summer that the rate was "AT LEAST" three points too high-but enough to let lenders breathe a little easier in the coming months and potentially encourage employers to start hiring."
"If successful, the Trump administration's attempt to fire Lisa Cook, a Biden appointee and the first Black woman to sit on the Fed board, would mark the only ousting of its kind since the institution's establishment, in 1913. Although the board's governors are appointed by a president, they are not beholden to any president's whims, and their full 14-year term ensures that their decisions are oriented around the long-term health of the American economy."
The Federal Reserve reduced its policy rate by 0.25 percentage point, choosing a middle path between restraining inflation and responding to weak jobs reports. Officials cited concern about "somewhat elevated" inflation while noting two consecutive weak employment reports when deciding the modest cut. The move may ease conditions for lenders and possibly encourage hiring, though it falls short of presidential demands for much larger cuts. The administration has also sought to remove Governor Lisa Cook, prompting a 2-1 federal appeals-court ruling allowing her to remain and vote while the government prepares an appeal that tests Fed independence.
Read at The Atlantic
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