Fed Cuts Rates Quarter-Point as Job Market Weakens

7 HOURS AGO·UPDATED 7 HOURS AGO

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Above: Jerome Powell at the Federal Reserve, in Washington, D.C., on Sept. 17, 2025. Image copyright: Chip Somodevilla/Getty Images

The Spin

Republican narrative

The cautious quarter-point cut reveals dangerous hesitation at a time when the economy desperately needs aggressive action. Job creation has stalled, with employers actually reducing payrolls and nearly a million jobs disappearing from government estimates. Meanwhile, millions of Americans are still struggling under the weight of high borrowing costs, stagnant wages, and a sluggish housing market. It's time for aggressive change.

FOX News

Democratic narrative

The Federal Reserve's quarter-point rate cut is a timely move to sustain economic growth amid global uncertainties. This measured rate cut demonstrates responsible monetary policy that balances competing economic pressures without reckless overreaction. Lower borrowing costs will stimulate consumer spending and business investment, thereby maintaining a strong job market. The Fed correctly prioritized gradual adjustment over populist demands for dramatic moves.

Investopedia The Associated Press

Cynical narrative

The Fed's quarter-point rate cut isn't just about economics — it's about optics and pressure. It's timing raises eyebrows: economic indicators don't demand urgency, and the Fed risks eroding its independence to maintain short-term political favor. With an election year looming, the central bank is engaging in political maneuvering under the guise of policy. The cut appeases markets and politicians, but sacrifices long-term credibility. It's a move to appease Wall Street, not to stabilize Main Street.

Reuters Moneycontrol