The Federal Reserve cut its key interest rate Thursday by a quarter-point in response to the steady decline in the once-high inflation that had angered Americans and helped drive Donald Trump's presidential election victory this week. In a statement after its latest meeting ended, the Fed said the "unemployment rate has moved up but remains low," and while inflation has fallen closer to the 2% target level, it "remains somewhat elevated."
- After their rate cut in September—their first such move in more than four years—the Fed's policymakers had projected that they would make further quarter-point cuts in November and December and four more next year. But with the economy now mostly solid and Wall Street anticipating faster growth, larger budget deficits, and higher inflation under a Trump presidency, further rate cuts may have become less likely, the AP reports.
- Speaking at a news conference, though, Fed Chair Jerome Powell said that "in the near term, the election will have no effects on our (interest rate) decisions."