Entry #6: The Fed Rate Cuts


Nicholas Standifer

ENG 101

11/15/2025


Fed Rate Cuts

    Every time that someone has to take out or borrow money there is one thing that is a deciding factor of their decision; the interest rates. The federal reserve is one of the driving factors of the economy. The federal reserve meets a total of 8 times a year and today I will be talking about the recent news and latest news of there last meeting.
photo from TuftNow

    First of all let's talk about how the federal reserve impacts the economy with interest rates. The federal reserve runs off of a dual mandate which means they have two goals. Their goals are to maximize employment and keep inflation around 2%. If the federal reserve decides to raise the interest rates then this will make it more expensive to borrow money. With higher rates the economy will slow down, which is why the Fed raises rate when inflation runs hot. Feds cut rates when they are more worried about unemployment in the economy and see a weak labor force. Cutting rates encourages more spending and for people to take risks.
Photo from Briticana
   
    In the most recent fed meeting the federal reserve decided to cut rates. This was highly expected from the market but what happened was not. The federal reserve made a lot of cautious comments on the economy according to fortune. The likelihood of another rate cut in December has decreased significantly, which cause the stock market to drop. The uncertainty from things such as tariffs, bad jobs report, presidential drama, a government shutdown, and many other events have made the markets very shaky recently.

    In conclusion the federal reserve has many impacts on the economy and stock market. All of the drama recently has only made these impacts amplified. If you were in charge of the United States would you even want to have a federal reserve.

Comments

  1. Kai JacksonNovember 17, 2025 at 6:44 AM

    This blog is great, very informative about your topic. I wasn't aware of the fact that the Federal Reserve chose to cut rates. Overall, you did a good job of establishing your main idea and staying consistent on one topic throughout your blog. I now understand the importance of the Federal Reserve and its contribution to the economy.

    ReplyDelete

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