Ali Velshi breaks down Trump’s effort to exert influence over the American economy and the Federal Reserve, after the institution issued a modest interest rate.
This is an adapted excerpt from the Sept. 20 episode of “Velshi.”
For the first time since December 2024, the Federal Reserve decided to lower interest rates. It was a modest cut — interest rates will decrease by a quarter of a percentage point — but in announcing its decision last Wednesday, the Fed also signaled that it will likely make up to two more cuts before the end of the year.
The move was widely expected, following recent jobs data that indicates the economy may be weaker than previously thought. Hiring has slowed and the unemployment rate has ticked up slightly to 4.3% last month.But what’s more concerning is that Stephen Miran isn’t just a voting member of the Federal Reserve now. It’s that he also remains a member of the White House staff.
The Fed decision was nearly unanimous. Eleven of the 12 Federal Reserve Board members voted in favor of cutting interest rates by a quarter-point.
The lone holdout was Stephen Miran, the Fed’s newest member, who advocated for a larger, half-point rate cut. Miran’s elevation to this position is unusual in a few different ways. For one, he’s only been a Fed governor for less than a week. Last month, Donald Trump nominated him to fill a vacancy on the board after one member resigned before her term was set to expire in January 2026.
The Senate quickly confirmed Miran last Monday by the narrowest of margins, 48 to 47, largely along party lines.
