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The Federal Reserve cut interest rates because inflation is now under control – but Fox smells a conspiracy

After failing to bully the Fed away from cutting rates before the election, Fox is accusing the central bank of “political interference” on behalf of Democrats

Written by Zachary Pleat

Research contributions from Isabella Corrao & Alicia Sadowski

Published

After the Federal Reserve cut interest rates for the first time since the onset of the COVID-19 pandemic, Chairman Jerome Powell explained in a statement that the “economy is strong overall” while “inflation has eased substantially,” and he cited recent, and projections for continued, stable economic growth as reasons it was an opportune time to begin implementing a rate reduction. 

Powell also shut down questioning from a Fox Business reporter that the cut had “some political motivations,” explaining: “Our job is to support the economy on behalf of the American people.”

Ignoring everything Powell said, Fox News and Fox Business figures reacted to the rate reduction by falsely claiming it was done for political reasons — to affect the presidential election for Democrats’ benefit — and suggesting that it meant the economy was weak. 

This follows a Fox-led effort to bully the Fed away from rate cuts before the election and false claims by conservative media about the strength of the economy, especially the improving inflation picture.

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  • Ignoring Fed Chairman Jerome Powell, Fox claimed the cuts were made for political reasons

    • Fox News anchor John Roberts asked: “Could they have done it weeks if not months ago, and does doing it now look like Powell is putting his thumb on the political scale?” Fox anchor Bret Baier responded, “It does affect things in the lead-up to, you know, 48 days from now the Election Day. So of course politics is going to factor in.” [Fox News, America Reports, 9/18/24]
    • Fox Business anchor David Asman: “There is an election coming up and there is a lot of suspicion that what Jay Powell is doing … is putting his finger on the scale.” [Fox News, The Story, 9/18/24]
    • Fox host Sean Hannity portrayed the Fed’s rate cut as political. Hannity said: “Doesn't Jerome Powell often talk about the independence of the Federal Reserve? And how convenient for the first time in four years, just before — weeks before an election, just as early voting begins in Pennsylvania now and around the country, let's drop interest rates and give people the impression that everything’s better.” [Fox News, Hannity, 9/18/24]
    • Hannity guest and Project 2025 contributor Stephen Moore agreed that the cut was political: “You’re so right, Sean. … I think a lot of Americans feel like the Fed has politically interfered with this election.” Moore added: “I think this looks like a political interference on the part of the Fed to help Kamala Harris over the goal line.” [Fox News, Hannity, 9/18/24]
    • Fox Business host Larry Kudlow: “Yeah, 48 days before the election, looks like Fed Chair Jay Powell just gave Kamala Harris a 50- basis- point gift.” Kudlow added: “This may well put the central bank smack in the middle of presidential politics, something they pledged not to do.” He also commented that this “super cut, well, that sounds kind of like the ultra-liberal Democratic Senators. Elizabeth Warren, Sheldon Whitehouse, and John Hickenlooper, who were all jawboning the Fed to lower interest rates by 75 basis points.” [Fox Business, Kudlow, 9/18/24]
    • Fox News host Neil Cavuto: “Some have worried that that might be a political move on the part of the Fed.” [Fox News, Your World with Neil Cavuto, 9/18/24]
    • Fox News contributor Scott Martin: “I think this is totally political.” [Fox Business, The Evening Edit, 9/18/24]
    • Fox Business host Dagen McDowell criticized the “political half-a-point rate cut from the Federal Reserve.” [Fox Business, The Bottom Line, 9/18/24]

  • Fox also suggested that the cuts mean the economy is weak, contrary to Powell’s statement

    • Fox Business host Brian Brenberg: “I think the fear here … the question is are there problems in the economy that they’re more worried about than they’ve been letting on?” Brenberg added: “I think the question is we want to hear from Jay Powell, how worried are you about this economy that you’re moving 50 basis points?” [Fox News, America Reports, 9/18/24]
    • After Hannity asked if the rate cut is “likely to cause a recession,” Moore insisted that “the economy is in real trouble right now.” [Fox News, Hannity, 9/18/24]
    • Asman: “A lot of people are worried — what is it that Jay Powell sees in the economy that might require a half-point cut?” Asman then repeatedly suggested that the cut means a recession may be coming. [Fox News, The Story, 9/18/24]
    • Fox Business host Elizabeth MacDonald asked: “Are we in a downturn? Because these size rate cuts are usually reserved for recessions.” [Fox Business, The Evening Edit, 9/18/24]