Fed Cuts Rates Amid Trump Re-Election Uncertainty

The Federal Reserve cut its interest rate by 25 basis points, lowering it to a range of 4.5% to 4.75%, as part of ongoing efforts to support the economy amidst cooling inflation. This move follows Donald Trump's re-election, introducing uncertainties regarding potential fiscal policy changes that could impact future Fed decisions. Jerome Powell, the Fed Chair, emphasized the Fed's independence, stating that he would not resign if asked by Trump, and that the election will not immediately affect policy decisions. The Bank of England similarly reduced its rate by a quarter of a percentage point, cautioning against rapid cuts due to potential inflationary pressures from new government measures. Analysts suggest that further rate cuts could occur in the U.S. if inflation continues to ease, though the path remains uncertain due to global economic factors. Small business owners, like those in Georgia, are hopeful for relief from these rate cuts, which could lower costs associated with federal loans.