U.S. Federal Reserve plans interest rate cut as economic uncertainty looms after Trump win
The U.S. Federal Reserve is expected to cut its benchmark interest rate by a quarter percentage point, bringing it to a range of 4.5% to 4.75%. This follows a previous half-point reduction in September.
The economic landscape may change significantly under a second Trump administration, which could affect inflation and growth. Investors anticipate that the Fed will cut rates less than previously expected due to potential increases in federal deficits and inflation.
The Fed's future decisions will depend on how Trump's policies impact the economy. While the Fed aims to control inflation, the uncertainty surrounding tariffs and tax cuts may complicate their approach.