Federal Reserve announcements and official press releases

Fed Cuts Rates by 0.25% After Trump's Election Victory

Nov 7, 2024, 07:13 PM

The Federal Reserve on Thursday, November 7, 2024, cut its benchmark interest rate by a quarter percentage point, or 25 basis points, to a target range of 4.50% to 4.75%. This marks the second rate reduction this year as the central bank responds to a steady slowdown in inflation pressures that have exasperated many Americans and contributed to Donald Trump's recent presidential election victory. The decision, which was unanimous among Federal Open Market Committee members, comes amid postelection uncertainty and potential shifts in the economic outlook due to the anticipated policies of President-elect Trump. Despite concerns that Trump's victory could lead to fewer future rate cuts, the Fed proceeded with the reduction. Federal Reserve Chair Jerome Powell addressed the decision in a press conference following the announcement.