The Federal Reserve sets interest rates, and it operates independently of the White House. But rates could come down as inflation cools.According to The New York Times, the Federal Reserve is responsible for setting interest rates and operates independently from the White House. However, if inflation decreases, interest rates could potentially come down. In a recent panel at the National Association of Black Journalists convention in Chicago, former President Donald J. Trump, who is running for the 2024 presidential race as a Republican candidate, promised lower interest rates if he is elected. It is important to note that the president does not have direct control over interest rates, as the Federal Reserve sets a key policy rate that influences borrowing costs across the economy. The Fed is also independent from the White House. While Mr. Trump has suggested that the Fed will lower rates due to lower inflation during his presidency, economists have pointed out that some of his proposed policies may actually increase inflation. This highlights the political significance of both inflation and high interest rates as the November 5 election approaches, despite the fact that inflation has been gradually decreasing in recent years. It is clear that the coming months will be politically charged for the Fed as they try to remain outside of the political arena.
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