According to PANews, the Federal Reserve announced a 25 basis point interest rate cut this week, lowering the federal funds rate target range to 4.5%-4.75%. All 12 voting members of the Federal Open Market Committee (FOMC) supported the rate cut. The policy statement omitted previous references to progress on inflation and increased confidence in achieving targets, instead highlighting the dual risks of employment and inflation.
Federal Reserve Chair Jerome Powell stated that future rate adjustments would depend on economic conditions, with the pace of cuts potentially accelerating or decelerating. He noted the high level of uncertainty and indicated that it is not appropriate to provide extensive forward guidance at this time. However, Powell emphasized a gradual shift towards a neutral policy stance. He also clarified that the upcoming election would not influence the Federal Reserve's immediate policy decisions and that President Trump's resignation would not affect his position, as the president lacks the legal authority to remove him.
It is reported that Trump's election has led traders to reduce their bets on further rate cuts by the Federal Reserve next year. It is anticipated that there may be one or two rate cuts in the first half of 2025, after which a pause is expected.