WASHINGTON — Richard Stern, director of the Grover M. Hermann Center for the Federal Budget, issued the following statement in reaction to the Federal Reserve's decision to lower interest rates by 0.50 percentage points. This marks the first cut since 2020 and comes just seven weeks before Election Day. 

Richard Stern, director of the Grover M. Hermann Center for the Federal Budget:  

“Today marks a new chapter in the DC Cartel’s long march toward the bankruptcy of our nation. While the decision to cut rates and expand the money supply may provide some relief from high interest rates, it does so at the expense of reigniting inflation. With prices for essentials rising over 20%, this move does not prioritize the interests of the American people. 

 

“The federal government has recklessly expanded in recent years, redirecting more of your hard-earned money into the hands of bureaucrats and their allies. As federal debt grows, it imposes a burden on every American. The Federal Reserve faces a choice: print more money, leading to skyrocketing inflation and price increases, or refrain from printing and impose prohibitively high interest rates on credit cards, prospective homeowners, and small business owners. 

 

“Without cutting government spending, this is merely rearranging deck chairs on the Titanic of debt. The federal deficit is the bank robber, the Fed is the getaway driver, and you are the bank.”