Preston Slams Fed Rate Cut as “Band-Aid on a Chest Wound” (Chicago, IL) – State Sen. Willie Preston, chair of the Illinois Senate Black Legislative Caucus and Democratic candidate for Illinois’ 2nd Congressional District, sharply criticized the Federal Reserve’s decision to cut interest rates on Wednesday, calling the move inadequate in the face of broader economic pressures.
“People in Chicago, the Southland and Central Illinois are being crushed by the inflationary effects of tariffs, which have made EVERYTHING more expensive — and made our agricultural products more difficult to sell,” Preston said in a statement.
“In a sane world, the Fed would be cutting rates today because inflation was coming down. Instead, they are cutting rates because, at the same time inflation is going up, the job market is heading off a cliff,” he continued.
Preston argued that outside corporations, such as investment giant Blackstone, are worsening the housing crisis by manipulating the market, while federal tariff policies keep mortgage rates high despite the Fed’s cuts. He also criticized proposals to privatize Fannie Mae and Freddie Mac, saying the move would make homeownership even more unattainable for working families.
“With out-of-state corporations like Blackstone already manipulating the housing market all over the 2nd Congressional District, the inflationary tariffs are keeping mortgage rates elevated beyond whatever relief today’s cuts provide. This is not to mention this administration’s stated desire to privatize Fannie Mae and Freddie Mac — which will ALSO make home ownership unreachable for so many in our communities,” Preston said.
Summing up his criticism, Preston compared the Fed’s action to “putting a Band-Aid on a chest wound.”
“And the worst is yet to come,” he said.
Preston Slams Fed Rate Cut as “Band-Aid on a Chest Wound”
