Progressive Dem Ro Khanna urges Jerome Powell to cut rates now or be ‘responsible’ for Trump winning White House
NY Post
Federal Reserve Chair Jerome Powell risks clearing the way for Donald Trump to win the presidency in 2024 if he doesn’t immediately start cutting interest rates, a top progressive lawmaker claimed Wednesday.
Ro Khanna, an outspoken California Democrat who has repeatedly blasted Powell over the Fed’s handling of inflation, once again took aim at the top central banker in an X post on Wednesday.
“Powell should cut interest rates now given most of inflation was caused by supply shocks,” wrote Khanna, a member of the Congressional Progressive Caucus.
“If he doesn’t, he may be the person most responsible for the possible return of Trump.”
After a slate of interest rate hikes over the last two years aimed at taming inflation, Fed officials have left rates unchanged at each of their last three meetings.
The stock market rallied this month, with the Dow Jones Industrial Average hitting all-time highs, after Fed officials signaled rates cuts were possible in the coming year — but probably not until the fall, which may be too late to help Biden in November’s presidential battle.
