Fed Poised for Second Straight Quarter-Point Rate Cut Thursday After Trump's Victory

Nov 7, 2024, 03:48 PM

Federal Reserve officials are poised to reduce their key interest rate by a quarter-percentage point for a second straight time on Thursday, responding to a steady slowdown of inflation pressures that have exasperated many Americans and contributed to Donald Trump's presidential election victory. The decision comes just two days after Trump's victory, which may upend the U.S. economic outlook and presents uncertainties for the central bank. Despite these political shifts, the Fed's rate cut plans are likely unchanged. Since their last meeting and the rate cut in September, Treasury yields have jumped. With inflation continuing to cool, the Federal Open Market Committee faces a difficult position. The decision will set the path for borrowing costs, with implications for the U.S. and global economy.