
Economy
Trump’s ‘golden age’ economic message undercut by his desire for much lower interest rates – which typically signal a weak jobs market

Joshua Stillwagon, Babson College
President Donald Trump seems to want to have it both ways on the U.S. economy.
On the one hand, he recently said the economy is in its “golden age” and referred to the U.S. as the “hottest country anywhere in the world.”
Yet at the same time, he has outright demanded that the Federal Reserve sharply slash interest rates to fuel economic activity. And his recently handpicked governor, Stephen Miran, has led the charge in pushing for a bigger cut than preferred by his new colleagues at the Fed.
When an economy is strong, central banks typically don’t cut interest rates and may even raise them to avoid spurring inflation. And so to support his argument for large cuts, Miran has played up “downside risks” to the economy and a weakening labor market, contrasting with Trump’s talk of a “golden age.”
Trump and Miran also seem to be ignoring the problem of inflation, which the president has said “has been defeated” and Miran considers close enough to the Fed’s target of 2%. Yet, inflation remains high and has been picking back up in recent months – one of the core reasons the Fed has taken a gradual approach to lowering interest rates.
I’m a macroeconomist, which means I study big-picture factors affecting an economy, such as interest rates.
It’s well known that lower rates spur faster growth, and of course all presidents want a stronger economy on their watch. But the Fed’s job when it sets interest rates is to deal with whatever reality the data shows – and make decisions accordingly.
Is the economy hot or not?
In the simplest terms, the Fed raises interest rates when the economy is “hot,” or inflation is above the Fed’s 2% target, and lowers them when there are concerns about unemployment.
At its most recent meeting, in September, the Fed lowered rates a quarter of a point, citing slowing jobs growth, and increased economic uncertainty. Trump nominee Miran was the only one of the 12 members of the Fed’s policy-setting committee to instead vote for a more aggressive half-point cut.
The only credible rationale for that large of an interest rate cut, in the face of still-high inflation, is by believing the labor market is incredibly weak. According to the Fed’s preferred measure, the personal consumption expenditures index, inflation has been accelerating all summer and was 2.7% at the end of August, well above the Fed’s 2% target.
There’s no doubt jobs growth has slowed considerably in recent months, but enough to completely ignore the risk of driving inflation higher? At this point at least, the Fed doesn’t think so.
And if the economy were in fact running hot, as the president claims, the Fed would have little choice but to keep rates flat or raise them, especially given elevated inflation.
Risks of following political whims
This situation gets at the heart of why central bank independence matters.
Trump’s efforts to influence the Federal Reserve have not been subtle and break with Congress’ intention to insulate the Fed from political manipulation. Besides pressing for big rate cuts, he has tried to fire a member of the Board of Governors over questionable allegations and mused about removing Fed Chair Jerome Powell.
The risks of following the wishes of a president in the face of what the data shows were starkly demonstrated in 2021, when Turkey’s president, Recep Tayyip Erdogan, fired the head of the country’s central bank. The central banker was pushing rates higher to tame inflation, which was at about 20%, but Erdogan demanded they be lowered. In response, Turkey’s lira plunged to record lows and inflation soared to over 70% in 2022.
Something similar could happen in the U.S. if Trump continues down the same path of meddling with the Fed. As a sign of how much Wall Street worries about this risk, a recent study estimated that if Trump followed through on his threat to fire Powell, the stock market could lose an estimated US$1 trillion as a result.
That’s because the Fed’s credibility rests on its ability to make decisions driven by economic evidence, not political expedience. That independence means policymakers must weigh data on inflation, jobs and growth rather than election cycles or partisan demands.
Justifying deeper rate cuts
Looking ahead to the Fed’s next meeting Oct. 28-29, policymakers face a delicate balancing act. With inflation still running above target and signs of slowing jobs growth, it needs to lower rates enough to prevent a downturn but not so low that inflation spirals out of control.
Traders are putting near-100% odds of two more quarter-point cuts this year, one on Oct. 29 and another in December. This would bring the Fed’s benchmark interest rate to a range of 3.5%-3.75% by the end of 2025, down from 4%-4.25% now.
Based on Miran’s own interest rate projections, he’s likely to again push for a larger cut of a half-point or more at both meetings, as he believes the Fed’s benchmark rate should be below 3% by the end of the year.
To me, as an economist, the only way a Fed acting independently could reasonably justify such a significant cut in rates in the next few months is if the unemployment rate begins rising steadily, with the economy clearly at risk of slipping into a recession.
Joshua Stillwagon, Associate Professor of Economics, Babson College
This article is republished from The Conversation under a Creative Commons license. Read the original article.
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3 Ways You Can Help Tackle Hunger and Strengthen Communities This Holiday Season

3 Ways You Can Help Tackle Hunger and Strengthen Communities This Holiday Season
(Family Features) The holiday season is often a time of joy, connection and celebration. For millions of families across the country, however, it is also a season of uncertainty, wondering how to put food on the table or meet other essential needs. According to the USDA, more than 47.4 million people in the United States experience food insecurity each year. That’s why, each holiday season, thousands of Charles Schwab employees come together to fight hunger and strengthen the communities where they live and work. Through employee meal-packing events and nonprofit grants, volunteers and partners help families access nutritious meals and vital support during the holidays and beyond. “As we gather with loved ones this season, it’s important to remember that not all of our neighbors have that security,” said Kristine Dixon, managing director of Charles Schwab Community Affairs. “By working side-by-side with local hunger relief organizations, we’re helping ensure more families can share in the joy of a holiday meal and the peace of knowing they are supported.” As you prepare for the holidays, here are a few ways you can help address hunger relief and support your neighbors. Donate to a Local Food Bank Food banks and pantries are at the heart of efforts to make nutritious food accessible for all. Inflation and rising costs of living have stretched budgets thin, making it harder for families to afford groceries. Nonperishable donations such as canned goods, pasta and rice are always in high demand. Monetary donations often go even further, giving food banks the ability to purchase exactly what is needed most. Volunteer Your Time The gift of time is just as valuable as food donations. Food banks and hunger relief nonprofits rely on volunteers to sort, pack and distribute meals. Even a few hours can make a meaningful difference, adding up to thousands of volunteer hours to help nonprofits meet urgent needs during the holiday season and year-round. Support Community Partnerships No single organization can solve hunger alone. Collective action from neighbors, companies, nonprofits and others is what creates lasting impact. This year, Schwab employees will join forces with partners like Harvest Pack to pack more than 1 million nutritious meals for families across the country. Supporting these types of efforts, whether through donations, volunteering or spreading awareness, can expand the impact. Hunger is about more than food; it’s about stability and opportunity. By giving, volunteering and partnering with organizations that serve families in need, you can make the holiday season brighter for millions of Americans. Learn more at aboutschwab.com/season-of-giving. Photo courtesy of ShutterstockStories of Change: People Making a Difference
Discover inspiring stories of changemakers making a positive impact. Explore videos and articles of people tackling today’s biggest challenges with action and hope. Visit: https://stmdailynews.com/stories-of-change/
High Demand Marks “Veggies for Veterans” Event Amid SNAP Delays
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National 211 hotline calls for food assistance quadrupled in a matter of days, a magnitude typically seen during disasters

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Senate Advances Deal to End Shutdown as ACA Subsidy Debate Intensifies
ACA Subsidy Question: Eight Senate Democrats broke ranks to help end the U.S. government shutdown — progressives are calling for leadership change while the fate of the ACA premium-subsidies now hangs in the balance.
Last Updated on November 10, 2025 by Daily News Staff![]()
Senate Advances Deal to End Shutdown as ACA Subsidy Debate Intensifies
The recent vote in the Senate to advance a stop-gap spending bill to reopen the government marks a turning point — but also a source of deep tension within the Democratic Party. Eight Senate Democrats broke with their caucus and joined Republicans, enabling the legislation to move forward. Their defection has prompted progressive backlash and raised bigger questions about the fate of ACA premium tax-credits, and whether new leadership in the Democratic Senate ranks is imminent.
The Vote That Shook the Caucus
On November 9–10, 2025, the Senate advanced a funding measure that would end the longest federal shutdown in U.S. history. Eight Democrats (and one independent who caucuses with Democrats) voted with Republicans to get to the 60-vote threshold required under Senate rules.
Those lawmakers include:
Catherine Cortez Masto (D-Nev)
Dick Durbin (D-Ill)
John Fetterman (D-Pa)
Maggie Hassan (D-N.H)
Tim Kaine (D-Va)
Angus King (I-Me)
Jacky Rosen (D-Nev)
Jeanne Shaheen (D-N.H)
Their main justification: the shutdown was inflicting too much damage on federal workers, food-aid recipients, and other Americans, and this was the best viable route to reopening the government.
Progressive Outrage and Leadership Questions
Progressive Democrats didn’t buy the justification. They argue that by voting to reopen the government without securing a guaranteed extension of the ACA subsidies, these eight senators essentially abandoned a major Democratic policy fight. Many called it a betrayal of working-class Americans who depend on those subsidies.
The vote has also triggered renewed calls for a shake-up in Democratic Senate leadership. Critics of Chuck Schumer argue that under his leadership the party lacked leverage and strategic clarity, allowing moderate-leaning Democrats to break away. Some are publicly saying: if the leader cannot deliver on major priorities like healthcare, why continue in position?
What This Means for the ACA Subsidies
The subsidies at stake are premium tax credits under the ACA that help millions of Americans afford health insurance. With those credits set to expire at the end of the year, the question becomes: will the government extend them, and if so under what terms?
Here are key points:
The deal that ended the shutdown did not include the guaranteed extension of those subsidies. Instead, it included only a promise of a vote later (in December) to address the subsidy extension.
That promise is weak in the eyes of many Democrats. There is no guarantee the vote will pass in December — Republicans oppose extension without major reforms, and it isn’t clear whether the House will follow.
If the subsidies are not extended, millions of Americans could see their insurance premiums rise significantly for 2026 — a politically explosive outcome especially for the Democrats heading into mid-terms.
On the flip side, if Democrats regain stronger negotiating power or leadership changes, there may still be hope for a more robust extension or even permanent fix — but that is uncertain and depends on internal party cohesion and bargaining leverage.
The Bigger Picture & Stakes Ahead
The broadcast-surface story is the shutdown. But below the surface are several consequential dynamics:
The eight senators’ decision signals that moderate members of the party are willing to prioritize ending the shutdown rather than extract full concessions on healthcare. That may embolden similar splits in other policy fights.
Progressive momentum within the party is rising — their anger over the subsidy gambit may feed leadership change, a firmer stance in 2026 campaigns, and internal challenges to the old guard.
For consumers and voters, the health-insurance premium question is no abstraction: if subsidies lapse, premiums will spike, especially for moderate-income households. That economic pain can shift electoral dynamics.
For the Democrats’ larger messaging, the risk is an identity crisis: if the party is seen as backing away from core promises (like healthcare affordability), it may affect voter trust and turnout.
For the policy, even if a vote occurs in December, the fix may be short-term rather than long-term, which leaves the cycle vulnerable to future cliffs unless structural reforms are enacted.
The Wrap Up (For now)
In short: the shutdown deal unlocked relief in the short run, but at the potential cost of longer-term healthcare policy gains. The eight Democrats who crossed the line may be lauded by some for pragmatism, but criticized by many for ceding leverage and failing to protect vital subsidies. Meanwhile, the fight over who leads the party and how bold it remains in 2026 is very much alive.
With the December vote looming, all eyes will be on whether the promise of action on ACA premium credits turns into a reality — or whether the surprise leadership shifts and policy limbo become the new status quo.
Sources
TIME – “The Eight Senators Who Broke With Democrats to End the Government Shutdown.”
Politico – “The Eight Senate Democratic Caucus Members Who Voted to End the Shutdown.”
Fox Baltimore – “Stopgap Deal Signals End to Shutdown but Renews Divisions Among Democrats.”
WYFF4 News – “Senate Reaches Deal to Extend Government Funding.”
Yahoo News – “Shutdown Deal Pits Democrats’ Moderates Against Progressives on ACA Subsidies.”
The Guardian – “Republicans Reject Democrats’ Proposal to End Longest Shutdown in U.S. History.”
STM Daily News will continue monitoring developments related to the Senate’s shutdown deal, Affordable Care Act subsidy discussions, and any forthcoming leadership responses. Updates will be added as new details emerge.
STM Daily News is a vibrant news blog dedicated to sharing the brighter side of human experiences. Emphasizing positive, uplifting stories, the site focuses on delivering inspiring, informative, and well-researched content. With a commitment to accurate, fair, and responsible journalism, STM Daily News aims to foster a community of readers passionate about positive change and engaged in meaningful conversations. Join the movement and explore stories that celebrate the positive impacts shaping our world.
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