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Fed Cuts Rates Amid Cooling Inflation
The Federal Reserve cuts interest rates amid cooling inflation and a weak jobs report, while Chair Powell asserts independence from political pressure.
English
China
EconomyUs PoliticsInflationInterest RatesEmploymentMonetary Policy
Federal ReserveFederal Open Market Committee (Fomc)
Jerome PowellDonald Trump
- What factors influenced the Federal Reserve's decision?
- The decision was based on cooling inflation and a weakening labor market. October's employment report showed only 12,000 jobs added, significantly lower than expected and impacting the employment figures of the two prior months.
- What action did the Federal Reserve take regarding interest rates?
- The Federal Reserve cut interest rates by 25 basis points, bringing the federal funds rate to 4.5 percent to 4.75 percent. This is the second rate cut in this easing cycle, following a 50 basis point cut in September.
- What is the current state of inflation according to the Federal Reserve?
- While inflation has eased, core inflation remains somewhat elevated, and Fed Chair Jerome Powell emphasized that the job of combating inflation is not yet complete. He stated that core PCE prices rose 2.7 percent.
- What is the overall assessment of the economic situation by Fed Chair Powell?
- Despite the rate cuts and positive economic indicators, Powell acknowledged that Americans are still feeling the effects of high prices, with real wage gains taking time to improve their financial situations.
- How will the recent presidential election impact the Federal Reserve's policies?
- Powell stated that the recent presidential election will not affect the Fed's policy decisions in the near term and that he would not resign if requested by the President-elect.