Federal Reserve plans second interest rate cut as inflation pressures ease
The Federal Reserve is expected to cut interest rates 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, which may influence the Fed's decisions. Investors are reacting to these developments, leading to increased Treasury yields and higher borrowing costs, despite the Fed's rate cut.
While the economy has shown solid growth and strong consumer spending, hiring has weakened. The Fed's efforts to support the job market through rate cuts may face challenges if inflation rises again, complicating future monetary policy.