Federal Reserve plans second interest rate cut as inflation pressures ease
The Federal Reserve is expected to cut its key interest rate for the second consecutive time on Thursday, responding to a decrease in inflation pressures. This follows the recent presidential election, which has introduced uncertainty regarding future economic policies.
Concerns have arisen about potential inflation from President-elect Donald Trump's economic proposals, including tariffs and tax increases. These factors may influence the Fed's decision-making and could limit further rate cuts.
Financial markets have reacted to the election, with rising Treasury yields leading to higher borrowing costs. This trend may undermine the benefits of the Fed's rate cuts, complicating its efforts to support the economy amid mixed signals of growth and hiring.