Fed set to announce latest interest rate move in wake of Trump's election win

Published On Nov 7, 2024, 6:00 AM

The Federal Reserve is expected to announce a 25 basis point cut to interest rates, lowering the federal funds rate to a range of 4.5% to 4.75%. This follows a larger cut of 50 basis points in September, marking the first reduction in four years. The move is influenced by indications of cooling inflation and recent disappointing job growth, with the economy adding only 12,000 jobs in October, significantly below expectations. Federal Reserve Chair Jerome Powell will hold a press conference after the announcement to discuss future monetary policy.

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The Federal Reserve's decision to cut interest rates reflects ongoing concerns about economic growth and inflation levels. A rate cut generally supports economic activity by making borrowing cheaper, which can positively impact banking, consumer spending, and investment sectors. With cooling inflation, this move could further stimulate growth in sectors sensitive to interest rates.

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