Fed expected to cut rates again as Powell looks to avoid surprises following Trump victory
Published On Nov 7, 2024, 6:00 AM
The Federal Reserve is set to cut interest rates by 25 basis points in response to economic conditions following the election of Donald Trump as president. This decision aims to avoid surprises and ensure steady economic performance despite mixed signals from the labor market and inflation concerns. Chairman Jerome Powell is expected to face questions about the intersection of Trump's economic policies with future monetary policy decisions, as Trump's past comments have raised concerns about Fed independence. Overall, the Fed's intent is to maintain a strong economic backdrop while addressing inflation that is beginning to moderate.
Stock Forecasts
SPY
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The expected rate cut typically supports stock prices as borrowing costs decline, but investor focus will also be on how Trump's policies could influence inflation and Fed independence, which introduces uncertainty.
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