{"id":1056046,"date":"2025-09-17T17:41:33","date_gmt":"2025-09-17T21:41:33","guid":{"rendered":"https:\/\/democrats.org\/?p=1056046"},"modified":"2025-09-17T17:41:33","modified_gmt":"2025-09-17T21:41:33","slug":"federal-reserve-makes-modest-interest-rate-cut-in-response-to-trumps-collapsing-economy-dramatically-cooling-labor-market","status":"publish","type":"post","link":"https:\/\/democrats.org\/news\/federal-reserve-makes-modest-interest-rate-cut-in-response-to-trumps-collapsing-economy-dramatically-cooling-labor-market\/","title":{"rendered":"Federal Reserve Makes Modest Interest Rate Cut in Response to Trump\u2019s Collapsing Economy & Dramatically Cooling Labor Market"},"content":{"rendered":"\n
\"\"<\/figure>\n\n\n\n

Today, the Federal Reserve made a small cut to interest rates to bolster a weakening job market driven by Donald Trump\u2019s disastrous economic agenda. The Federal Reserve determined that the job market is no longer solid<\/a> because \u201cjob gains have slowed<\/a>, and the unemployment rate has edged up,\u201d while inflation has remained elevated. Federal Reserve Chair Jerome Powell painted a bleak picture of the labor market, describing it as \u201creally cooling off.\u201d <\/p>\n\n\n\n

DNC Senior Advisor for Messaging, Mobilization, and Strategy Tim Hogan released the following statement: <\/em><\/strong><\/p>\n\n\n\n

\u201cIf it wasn\u2019t clear before, it\u2019s clear now: Donald Trump has betrayed working and middle-class Americans. Aided by rubber-stamp Republicans, Trump\u2019s 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\u2019s 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\u2019s broken those core promises.\u201d <\/p>\n\n\n\n

As Federal Reserve Chair Jerome Powell stated during today\u2019s press conference, \u201clabor 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,\u201d while \u201cwage growth has continued to moderate.\u201d Powell called out the extremely challenging job market for young people and recent college graduates. <\/p>\n\n\n\n

Powell also recognized that the housing sector was \u201cweak.\u201d Data released today<\/a> revealed that building permits have contracted for the fifth consecutive month, the longest streak since 2008\/2009. Americans continue to struggle<\/a> with the high cost of housing and the few options available.<\/p>\n\n\n\n

Trump\u2019s chaotic economic agenda has driven up<\/a> inflation, skyrocketing prices for basic necessities. Consumer sentiment worsened<\/a> in August, particularly among lower- and middle-income consumers. Meanwhile, wages have decreased<\/a> and job opportunities <\/a>have become more scarce, leaving Americans unemployed and underemployed<\/a>. In the second quarter, major American companies<\/a> told their investors about how Trump\u2019s economy is causing them to raise prices on consumers. <\/p>\n\n\n\n

Trump\u2019s 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. <\/p>\n","protected":false},"excerpt":{"rendered":"

Today, the Federal Reserve made a small cut to interest rates to bolster a weakening job market driven by Donald Trump\u2019s disastrous economic agenda. The Federal Reserve determined that the job market is no longer solid because \u201cjob gains have slowed, and the unemployment rate has edged up,\u201d while inflation has remained elevated. Federal Reserve […]<\/p>\n","protected":false},"author":292,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-1056046","post","type-post","status-publish","format-standard","hentry","category-press-release"],"acf":[],"yoast_head":"\nFederal Reserve Makes Modest Interest Rate Cut in Response to Trump\u2019s Collapsing Economy & Dramatically Cooling Labor Market - Democrats<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/democrats.org\/news\/federal-reserve-makes-modest-interest-rate-cut-in-response-to-trumps-collapsing-economy-dramatically-cooling-labor-market\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:site_name\" content=\"Democrats\" \/>\n<meta property=\"article:published_time\" content=\"2025-09-17T21:41:33+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/democrats.org\/wp-content\/uploads\/2025\/01\/Black-Logo-White-Fill-For-Email.png\" \/>\n\t<meta property=\"og:image:width\" content=\"1101\" \/>\n\t<meta property=\"og:image:height\" content=\"483\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"Adrianna Tomasello\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Adrianna Tomasello\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/democrats.org\/news\/federal-reserve-makes-modest-interest-rate-cut-in-response-to-trumps-collapsing-economy-dramatically-cooling-labor-market\/\",\"url\":\"https:\/\/democrats.org\/news\/federal-reserve-makes-modest-interest-rate-cut-in-response-to-trumps-collapsing-economy-dramatically-cooling-labor-market\/\",\"name\":\"Federal Reserve Makes Modest Interest Rate Cut in Response to Trump\u2019s Collapsing Economy & Dramatically Cooling Labor Market - 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