(AURN News) — No, you’re not imagining it — it’s getting harder financially for middle- and lower-income Americans.
On Wednesday, the Federal Reserve cut interest rates by a quarter point. While noting a slowing job market and a higher unemployment rate, Federal Reserve Chair Jerome Powell also pointed to strengths in the economy. But who is actually benefiting from the current economy and President Donald Trump’s economic policies?
During the press briefing announcing the rate cut, Powell was asked whether the move was fueling investment in artificial intelligence instead of job creation. It’s an important question as more workers continue to lose jobs because of AI.
“You know, we use our tools to support the labor market and to create price stability — that’s what we do. Those are our two jobs, right?” Powell said. “By lowering rates at the margin, that will support demand, and that will support more hiring — and that’s why we do it,” he added.
“Lower rates will support more demand, and that’ll support hiring over time,” Powell said.
Still, the average American sees headlines nearly every day about more layoffs. From Amazon to CBS News to NBC News, more people are losing their jobs. With the Department of Government Efficiency influencing layoffs of at least 200,000 federal workers — and the current government shutdown leaving many without paychecks — it’s hard to ignore what seems to be a widening gap between the haves and the have-nots.
“There’s uncertainty around inflation and the path ahead for it. That’s why the pace we’re going has been a careful one,” Powell said.
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