Federal Reserve cuts interest rates as Trump’s second term raises economic uncertainty
The Federal Reserve cut interest rates by a quarter percentage point, bringing the benchmark range to 4.5% to 4.75%. This decision responds to easing inflation and a slowdown in job growth, following a larger cut in September.
Future rate cuts may be influenced by President-elect Trump's economic policies. His plans, including tax cuts and tariffs, could increase inflation, making the Fed more cautious about further reductions in interest rates.
Bond yields rose this week as investors anticipated potential increases in federal debt from Trump's policies, leading to higher mortgage rates. The average interest rate on a 30-year home loan reached 6.79%.