On Wednesday, the Federal Reserve made a cut on its benchmark interest rate by a half of a percentage point.
Usually when the Federal Reserve cuts interest rates it's by a quarter of a percentage point. This cut in particular is considered a big cut.
But some locals think it's not a big enough cut, or it was the wrong time to make the cut.
Lei Trease, a Reno Resident, shares her thoughts: "I don't think it's enough. I think they need to drop it by at least two. People can afford to do something when you drop an interest rate at a lower or bigger percentage... but a half a point isn't going to do anything for us."
Bill, a Fernley resident says, "Food's still high, gas is still high, mortgage rates are still high and until you can start bringing that stuff down... that's when you start cutting it to make it affordable for people."
Other locals say this cut will be helpful to their own wallets while some don't think it will help at all.
Karan Anedezshutt, a Reno resident says, "We're a family of six. It's a big help for us, decreasing the prices, for example the housing and especially the food, of course, it's a very big help for our family."
Trease says, "It's not enough, how are people supposed to buy a house? How are people supposed to do anything with half a point? It's annoying."
Others say they're surprised the fed made such a big cut.
Tim Stephens, a Carson Valley resident, explains his thoughts: "I was surprised they did a half because they're so cautious about everything they do... but it's alright with me, we all need to have a little bit less of what we pay on our loans."
CBS reports this interest rate cut as a critical turning point in the fed's fight against inflation in 40 years.
Some analysts suggest that lowering the interest rate by half a percentage instead of a quarter of a percentage like usual shows the fed may be concerned about the job market.
But some locals are saying they think the Federal Reserve's timing before the election is inappropriate.
Anthony Raymond, another Reno resident, says, "I think it's a manipulation by the fed to make the economy seem better before the election."
Trease goes on to say, "It's all before the presidential election, everything happens before the presidential election. They're just trying to make everything look good."
The federal reserve in and of itself is not a political entity and does not set rates based on politics, however rate setting in turn can effect politics.
Also, former President Donald Trump nominated the Federal Reserve Chair Jerome Powell in 2017, and President Joe Biden also re-nominated him for the position in 2021.
