Federal Reserve cut would help economy Commentary: An argument for a Federal Reserve rate cut

The Federal Reserve's interest rate policy is once again in the spotlight, with President Donald Trump supporting a rate cut. His recent comments echo a long-standing debate between elected leaders and the central bank - a dynamic we saw with Presidents Ronald Reagan and George H.W. Bush during periods of tight monetary policy. That tension is healthy. The Fed may be independent, but its decisions have real-world consequences for everyday Americans - workers, entrepreneurs and homeowners alike.

The Fed's current policy - designed for a crisis that has largely passed - is now holding back economic growth. Mortgage rates, while recently declining to approximately 6.46%, remain elevated compared to recent historical averages, impacting home affordability. Credit card APRs exceed 20%, and small business loans are more expensive and harder to access than ever. These high rates stifle the very growth that could restore momentum to Main Street.

The Jobs Picture: A Reality Check

The Biden White House has frequently touted "millions of jobs created" over the past few years. However, the Bureau of Labor Statistics recently revised job figures downward by nearly 911,000, highlighting that the original numbers overstated job growth. At the same time, many new positions are part-time or multiple-job roles, while sectors like construction, manufacturing and retail - critical to middle-class Americans - have seen stagnant or declining employment.

Household debt is at record levels, and small business optimism has slipped, indicating that the labor market and the broader economy are weaker than commonly perceived.

How We Got Here

Inflation surged to a 40-year high of 9.1% in 2022, and the Federal Reserve responded with rapid interest rate hikes to stabilize prices. While necessary at the time, those rates now risk suppressing growth rather than curbing inflation, which has cooled to 2.6% in 2025. Commodity prices have stabilized, core inflation continues to fall, and targeted pro-growth policies - such as deregulating energy markets and boosting domestic manufacturing - have helped lower costs and support supply.

The Case for a Rate Cut

The Fed's independence is vital, but independence should not become inertia. With inflation under control, the economy showing signs of strain, and markets steady, now is the moment to cut rates. Doing so would relieve households, ease borrowing costs, and unlock growth for small businesses - the true engines of the American economy.

I've served in the 82nd Airborne, delivered freight for FedEx and built a small business in rural Virginia. I've seen how economic policy translates into paychecks, payrolls, and opportunity-or the lack of it. For families like mine, every percentage point matters.

The Fed's job was to stop inflation. Mission accomplished. Now it's time to stop punishing workers, entrepreneurs and homeowners and let America get back to work.

Nick Rush, former Virginia Delegate and current chair of the Subcommittee on Rural Development for the Virginia Economic Development Partnership, owns a small business in Virginia.