Fed to Announce Quarter-Point Rate Cut Amid Trump's Victory

Nov 7, 2024, 03:48 PM

The Federal Reserve is set to announce its latest decision on interest rates on Thursday, just two days after President-elect Donald Trump's victory. The Fed is expected to lower interest rates by a quarter-percentage point, marking the second consecutive reduction. This decision comes amid a steady slowdown of inflation pressures, which have been a significant factor in Trump's election win. Trump's return to the White House is anticipated to reshape the economic outlook and influence Fed chair Powell's future policy decisions. Radical and random government decisions, such as tariffs or deregulations, may pose additional challenges for the Fed as it navigates the trade-off between output gap and inflation.