US Fed Cuts Rates, Markets Soar After Trump Victory
US Fed Cuts Rates, Markets Soar After Trump Victory
The Facts
The Federal Reserve on Thursday unanimously approved a quarter-point interest rate cut, bringing the federal funds rate to a range between 4.5 and 4.75%, following Tuesday's reelection of former Pres. Donald Trump.The US Federal Reserve on Thursday unanimously approved a quarter-point interest rate cut, bringing the federal funds rate to a range between 4.5% and 4.75%, following Tuesday's reelection of former Pres. Donald Trump.
The reduction is a smaller move compared to September's half-point cut, as the Federal Reserve is seeking to maintain economic strength while keeping inflation on track to meet its 2% target. Over the summer, the Fed started this process by raising the rate to a range of 5.25 to 5.5% — a 23-year high.The reduction is a smaller move compared to September's half-point cut, as the Federal Reserve is seeking to maintain economic strength while keeping inflation on track to meet its 2% target. Over the summer, the Fed started this process by raising the rate to a range of 5.25% to 5.5% — a 23-year high.
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. TheThis USa isstrong back,start babyto what will be an even stronger term.
Don'tThis start celebrating this announcement asis somebeing sortfalsely ofaccredited productto 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.
