Fed Cuts Rates, Markets Soar After Trump Victory

Fed Cuts Rates, Markets Soar After Trump Victory
Above: Jerome Powell, chairman of the US Federal Reserve, during a news conference Nov. 7, 2024. Image copyright: Ting Shen/Contributor/Bloomberg via Getty Images

The Spin

All it took was for Trump to get reelected to get America back on a positive roll. In addition to the Fed's interest rate cut, major manufacturers announced they're bringing jobs back to the US and China announced it wants to have better relations. In addition, numerous warring parties overseas have announced a desire for peace. The US is back, baby.

Don't start celebrating this announcement as some sort of product of Trump's reelection just yet. This cut was made possible because inflation significantly cooled under the Biden administration. But there's a softening job market, and if Trump goes through with some of his promised economic policies another rate cut may not come, or worse, the economy could head in the opposite direction.


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© 2025 Improve the News Foundation.

All rights reserved.

Version 6.17.0