Grant Cardone Asks Why Powell Won't Cut Another 100 Points Now, Says Fed Is Scared To Reveal How Weak The Economy Is

In a recent tweet, real estate mogul and entrepreneur Grant Cardone questioned why the Federal Reserve isn't cutting interest rates more aggressively. After the Fed's recent decision to lower rates by 50 basis points to a range of 4.75%-5%, Cardone suggested that, given the economic circumstances, they should have made a more substantial cut.

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Cardone pointed out that if Fed Chair Jerome Powell plans to cut another 100 basis points by the end of the year, why not just do it now? He hinted that the Fed might be hesitant to take this step because they don't want to show how fragile the economy is.

More rate cuts are anticipated to bolster the economy, so the Fed’s move to lower rates this week is probably only the beginning. Many believe it was a much-needed action to help reduce borrowing costs and promote economic growth. Some, like Cardone, think it falls short.

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Cardone's comments come as the Fed is trying to balance controlling inflation with keeping the job market stable. Powell has indicated that the Fed is trying to take a cautious approach, adjusting rates as needed while monitoring the overall economic health.

“There is thinking that the time to support the labor market is when it is strong and not when you begin to see layoffs,” Powell said.

Both presidential candidates had different takes on the recent Fed rate cut. Vice President Kamala Harris called the reduction "welcome news" for Americans, adding, "I know prices are still too high for many middle-class and working families." 

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On the other hand, Donald Trump, the Republican nominee, was more skeptical. He said, "To cut it by that much, assuming they're not just playing politics, the economy would be very bad."

The Fed has kept interest rates high since last July to combat inflation, which hit a 40-year high in 2022. While Fed Chair Jerome Powell didn't declare victory over inflation, he noted that it's now close to the 2% target and the job market remains strong. 

After the Fed announced the rate cut, U.S. stocks initially went up but later dropped. The U.S. dollar strengthened slightly and Treasury yields rose. Analysts are now expecting the Fed to cut rates further, with the policy rate possibly dropping to around 4.00%-4.25% by the end of the year. 

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