WATCH: Following Interest Rate Cut, Federal Reserve Chair Jerome Powell Says Biden-Harris Border Policy Has Increased Unemployment

On Wednesday, Federal Reserve Chair Jerome Powell announced that the Fed would lower interest rates by 50 basis points, half a percent, in the first rate cut since the Fed endeavored to get inflation under control in 2022. The new rate is 4.75 percent to 5 percent after being lowered from 5.25 to 5.5 percent.

Despite attempts by the Biden White House to claim that the inflation that plagued America from 2021 to 2023 was "transitory," the Fed had to take drastic action to combat the surge of money into the economy due to the American Rescue Plan, the Inflation Reduction Act, and other legislation that ballooned federal spending. The Federal Reserve raised rates from near zero in March 2022 to 5.25 to 5.5 percent to get inflation under control, peaking at 9.1 percent in June 2022.

Those efforts, which drastically increased mortgage and loan rates for the average American, were successful in getting inflation somewhat under control as they attempted a soft economic landing. According to the consumer price index, a metric that tracks the prices of goods and services, inflation currently stands around three percent.

During the announcement of the rate cut, however, Powell explained that some of the Biden-Harris policies have contributed to a cooling employment market, notably the influx of illegal migrants on the southern border. "There's been quite an influx across the borders, and that is actually one of the things that's allowed the unemployment rate to rise," Powell said. Unemployment reached 4.3 percent in July and was 4.2 percent last month, a historically low rate.

In response to the rate cut, Republican vice presidential candidate JD Vance (R-OH) said that the rate cut will do little to help Americans suffering. "Half a point is nothing compared to what Americans have been dealing with for the last four years. When Donald Trump left office, a lot of Americans were getting 3-4% mortgages; now they're getting 8% mortgages; half a point is not going to help those families a whole lot," he said. "It's better than nothing, but again, the reason why we have sky-high inflation, the reason why we have high interest rates, is because Kamala Harris cast the deciding vote on the 'Inflation Explosion Act,' and then she tried to do everything she could to shut down American energy."

"So Americans are suffering from this stuff, and the fact that the Fed is going to give them a little relief in the midst of an election, by the way, is nothing compared to the disaster that Kamala Harris' policies have caused in this country," he added.

WATCH:

🚨Fed Chair Jerome Powell says the massive influx of illegal immigrants under Kamala has RAISED the unemployment rate: "There's been quite an influx across the borders, and that is actually one of the things that's allowed the unemployment rate to rise." pic.twitter.com/7jaJDRzpdk

— Trump War Room (@TrumpWarRoom) September 18, 2024

.@JDVance reacts to the fed cutting interest rates: "Half a point is nothing compared to what Americans have been dealing with for the last four years. When Donald Trump left office, a lot of Americans were getting 3-4% mortgages, now they're getting 8% mortgages, half a point is… pic.twitter.com/nDkwzCW3ZP

— Trump War Room (@TrumpWarRoom) September 18, 2024

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