US Federal Reserve Cuts Interest Rate to 4.75%

Following Donald Trump's presidential election victory, economists have adjusted their forecasts for interest rate cuts in the U.S., with the Federal Reserve lowering rates by 0.25% to 4.75% and signaling potential further cuts. However, uncertainty looms regarding the impact of Trump's policies on inflation and economic growth, leading some banks to revise their expectations for 2025 cuts significantly. Meanwhile, central banks in the UK and Sweden also announced rate cuts, with the Bank of England adopting a cautious approach amid concerns about tax rises potentially increasing inflation. The Reserve Bank of Australia has indicated that despite falling inflation, any rate cut might be delayed, raising concerns among homeowners. Overall, a global trend of rate cuts reflects increasing economic uncertainty amidst political changes. Analysts emphasize the need to observe future economic developments closely before making definitive predictions about monetary policy.