The Fed’s rate cut had nothing to do with politics. That’s not holding politicians back

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.

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.”) Still, the overall message from the central bank chief was clear: “The US economy is in a good place, and our decision today is designed to keep it there.” In a parallel universe, everyone would agree to be happy that the pandemic-ravaged economy is finally returning to a healthy equilibrium. But this is America, 48 days before a national election. So everything is political, even the routine monetary policy adjustments of the fiercely nonpartisan, independent Fed. On Wednesday, Republican Sen. Tommy Tuberville of Alabama called the decision “shamelessly political,” arguing the central bank “is clearly trying to tip the balance in favor of Kamala Harris.”