What the first interest rate cut in four years means for the Fed's fight against inflation

David Wessel:

Well, you see, that was inevitable. Whatever they did, they will be accused of trying to influence the election. If they had done too little, the Democrats would have said they were holding back because of the election.

I think, bottom line, I actually believe the Fed is doing what it thinks is necessary for the economy. It's trying to ignore the timing of the election. People don't believe that, but that's why we have an independent central bank with sort of technocratic leadership, so it can do what's right for the economy.

They know they're going to get in trouble with the Republicans, even though they're a little ambivalent. Speaker Johnson said today: “I don't think they should have done it so close to the election, but I'm glad they did it.” Not exactly a clear message.