Today, Explained The ¯\_(ツ)_/¯ economy
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Dec 11, 2025 
Neil Irwin, Chief Economics Correspondent at Axios, breaks down the Federal Reserve's recent rate decisions, emphasizing the complex interplay between interest rates, inflation, and the political pressure from former President Trump. Meanwhile, Andrew Prokop, a Vox reporter, delves into the historical skepticism of American presidents towards economists, tracing the shift from Keynesian principles to neoliberalism and the erosion of trust during the Great Recession. Together, they highlight the challenges facing today's economic landscape.
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Why The Fed Lowered Rates
- The Fed cut its target interest rate by 0.25 percentage points, marking the third quarter-point cut this year.
- Officials judged cooling labor markets and transitory tariff-driven inflation as reasons to ease policy now.
Dissent At The Fed Reveals Deep Splits
- The Fed vote showed real division: two formal dissenters and additional officials preferring no cut.
- Counting the quarterly "dots" suggests about six of 19 officials wanted to keep rates unchanged.
Affordability Vs. Anti-Inflation Tools
- Trump frames high prices as an affordability problem and blames the Fed for keeping rates high.
- Neil Irwin argues ordinary people see higher rates as making life more expensive even if the Fed views them as anti-inflationary.