Federal Reserve Makes Modest Interest Rate Cut in Response to Trump’s Collapsing Economy & Dramatically Cooling Labor Market Arrow

Today, the Federal Reserve made a small cut to interest rates to bolster a weakening job market driven by Donald Trump's disastrous economic agenda. The Federal Reserve determined that the job market is no longer solid because "job gains have slowed, and the unemployment rate has edged up," while inflation has remained elevated. Federal Reserve Chair Jerome Powell painted a bleak picture of the labor market, describing it as "really cooling off."

DNC Senior Advisor for Messaging, Mobilization, and Strategy Tim Hogan released the following statement:

"If it wasn't clear before, it's clear now: Donald Trump has betrayed working and middle-class Americans. Aided by rubber-stamp Republicans, Trump's economic trainwreck has forced families and businesses to shoulder higher prices for basic goods and, now, a hollowed-out job market. Because of Trump, it's harder than ever to get by and make ends meet. As he doubles down on his chaotic trade war and massive tax cuts for the ultrarich, there appears to be no relief in sight for Americans, many of whom put him in office in the hope of that very relief but now see he's broken those core promises."

As Federal Reserve Chair Jerome Powell stated during today's press conference, "labor demand has softened and the recent pace of job creation appears to be running below the breakeven rate needed to hold the unemployment rate constant," while "wage growth has continued to moderate." Powell called out the extremely challenging job market for young people and recent college graduates.

Powell also recognized that the housing sector was "weak." Data released today revealed that building permits have contracted for the fifth consecutive month, the longest streak since 2008/2009. Americans continue to struggle with the high cost of housing and the few options available.

Trump's chaotic economic agenda has driven up inflation, skyrocketing prices for basic necessities. Consumer sentiment worsened in August, particularly among lower- and middle-income consumers. Meanwhile, wages have decreased and job opportunities have become more scarce, leaving Americans unemployed and underemployed. In the second quarter, major American companies told their investors about how Trump's economy is causing them to raise prices on consumers.

Trump's attacks on the Federal Reserve and the Bureau of Labor Statistics are undermining financial markets, businesses, and the economy, exposing Americans to even more volatility.