Federal Reserve Policy Under Scrutiny: Economists Debate Rate Cuts and 'ME-Economy' Impact on Fox Business

A critical discussion on the Federal Reserve's monetary policy and its economic ramifications is slated for Fox Business, featuring Bloomberg's Sonali Basak alongside market analyst Charles Payne and economist Danielle DiMartino Booth. The panel convenes on what Basak termed "FED DAY," indicating a focus on the Federal Open Market Committee's (FOMC) actions and their influence on the national economy. This timely debate precedes the next regularly scheduled FOMC meeting on November 5-6, 2025.

Danielle DiMartino Booth, CEO of QI Research LLC and a former Federal Reserve insider, is expected to offer her characteristically sharp critique of the central bank. Known for her view that the Fed's policies primarily benefit "the few," she recently articulated concerns that "The Fed Refills the Punch Bowl To Float the ME-Economy for the Few," suggesting a disproportionate advantage for financial markets over everyday Americans. Booth has previously cited rising auto repossessions as a bellwether for underlying economic weakness.

Charles Payne, host of Fox Business Network's "Making Money," will contribute his insights into the stock market and its reaction to economic data. Recent reports from Fox Business indicate ongoing debates among economists regarding the Fed's next moves, with some anticipating rate cuts to prevent a weakening labor market, while others voice concerns about persistent inflation. Futures traders are currently pricing in a 98.3% probability of a 25-basis-point rate cut by the FOMC, which would lower the federal funds rate to a range of 3.75% to 4.0%.

The conversation will likely explore the divided opinions within the Fed itself, as evidenced by recent dissenting votes on interest rate decisions. Federal Reserve Chair Jerome Powell acknowledges the "curious balance" in the labor market, where job creation slows despite a tight supply of workers, highlighting the complex challenges facing policymakers. This discussion promises to shed light on the central bank's strategic direction and its potential impact on economic stability and growth.