On Wednesday, former Obama administration economic advisor Betsey Stevenson expressed her astonishment at Donald Trump’s running mate J.D. Vance and his supporters’ economic optimism, despite the Federal Reserve’s recent rate cut.
Stevenson shared her thoughts on X, stating, “I have to admit that I am pleasantly surprised that J.D. Vance and his supporters think the economy is too strong for the rate cut.” She accompanied her statement with a video clip from a Vance rally. In the video, Vance was asked about the Federal Reserve’s decision to cut interest rates by 50 basis points. The crowd responded with boos. Vance, in turn, said, “My reaction is half a point is nothing compared to what American families have been dealing with for the last 3 years.” The crowd then erupted in cheers, indicating their agreement with Vance’s stance.
Stevenson’s post is particularly noteworthy given the ongoing debate surrounding the implications of the rate cut. Republican presidential nominee Trump has expressed skepticism over the Federal Reserve’s decision, suggesting it could be indicative of a faltering U.S. economy or a politically motivated action.
Stevenson’s surprise at Vance’s optimism might stem from her previous criticism of the Republican vice presidential nominee. She had previously rebuked Vance for spreading misinformation about the effects of tariffs on consumer prices.
This comment arrives in the wake of the Federal Reserve’s unexpected decision to slash interest rates by 50 basis points. This marked the first rate cut in over four years and surprised Wall Street analysts who had anticipated a more modest 25-basis-point cut.
