Biden makes ‘declaration of progress’ on economy after Fed cuts interest rates

With the Federal Reserve trimming interest rates for the first time since before the Covid-19 pandemic and inflation rates slipping to pre-Covid levels, President Joe Biden is taking a moment to savor the victory with a speech to the Economic Club of Washington on Thursday.

Biden said the decision by the Fed to cut rates after years of post-pandemic inflation led them to raise them from the near-zero levels they were at during the worst days of Covid represented a “good day for the country” and “good news for consumers” because borrowing costs will come down.

“It’s good news, in my view, for the overall economy, because lower borrowing costs will support economic growth. And it’s important signal from the Federal Reserve to the nation that after repeated interest hikes to cool down inflation, inflation has come back down, and the Fed is to lowering rates to keep the … economy growing at its peak,” Biden said, citing the decline in inflation from a peak of 9.1 per cent to nearly 2 per cent today.

But Biden stressed that he was not there to brag about “a job well done,” but was instead there to discuss “how far we come, how we got here, and most importantly, the foundation that I believe, built for a more prosperous and equitable future in America.”

“The Fed lowering interest rates isn’t a declaration of victory. It’s a declaration of progress. It’s a signal we’ve entered a new phase of our economy and our recovery,” Biden continued, adding later that he believes it’s important for the country to recognize the progress that has been made rather than becoming “locked in the fear of negative mindset … instead of seeing the immense opportunities in front of us right now.”

“This is a moment, in my view, for business to feel