Panicked Democrats Demand Rate Cuts Now

Democrats on Friday urged the nation’s central bank to cut interest rates now as the unemployment rate surged.

The unemployment rate jumped to 4.3 percent and employers added 114,000 workers to their payrolls in July, a significant miss from economists’ 180,000 expected jobs estimate.

As Breitbart News Economics Editor John Carney noted, the significant jump in unemployment may suggest that the economy might be heading towards a recession:

The 4.3 percent unemployment rate brings the three-month average 50 basis points above the lowest three-month average over the past 12 months, a threshold known as the “Sahm Rule” that historically has indicated the beginning of a recession.

Fed chairman Jerome Powell on Wednesday said that while recessions have typically followed a triggering of the Sahm rule, a recession was not guaranteed.

“It’s not like an economic rule, where it’s telling you something must happen,” Powell said.

Many Democrats who have been calling for the Federal Reserve to cut interest rates are demanding that the Fed take action now.

Sen. Elizabeth Warren (D-MA) wrote:

Fed Chair Powell made a serious mistake not cutting interest rates. He’s been warned over and over again that waiting too long risks driving the economy into a ditch. The jobs data is flashing red. Powell needs to cancel his summer vacation and cut rates now — not wait 6 weeks.

Democrats on the Joint Economic Committee, which is chaired by Sen. Martin Heinrich (D-NM), wrote, “Seems like a good time to remind folks that more prime-age adults are employed now than at any time in history. No need to freak out yet — but the Fed still needs to cut rates. It’s that simple.”

Heinrich contended on Monday, “Inflation is down. There is no reason to keep interest rates artificially high. It is time for the Fed to cut rates.”