Harris campaign slams Trump's claim that Fed rate cuts are politically motivated

Vice President Harris' campaign slammed Trump's criticism of the Federal Reserve's first rate cut in four years and focused on economic issues ahead of the November presidential election. Trump spoke out after the Fed's 50 basis point rate cut on Sept. 19, calling it a "political move" and saying a 25 basis point cut would be appropriate. He has previously suggested that independent central banks should be somewhat controlled by the executive branch. Harris' senior policy adviser Brian Nelson called Trump's response "reckless," according to a campaign memo. Trump claimed without evidence that the Fed's decision was politically motivated and "an attempt to keep someone in office," although he did not say in the Newsmax interview that he supported higher rates. The White House called the rate cut "welcome news." The Harris campaign's message comes ahead of a speech Trump is scheduled to give in North Carolina on Saturday, where he is expected to address economic issues that have worked against Harris, including the highest inflation in the U.S. in 40 years under Biden's presidency and polls that have consistently supported Trump's handling of the economy. In contrast, Nelson believes Trump "would be an economic disaster as president," noting predictions that higher tariffs and continued tax cuts for the wealthy could have inflationary effects. (Bloomberg)