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Fed Cuts Rates, Trump's Return Creates Uncertainty
The Federal Reserve cuts interest rates again amid slowing inflation, while Donald Trump's return to power introduces uncertainty about the future of monetary policy.
German
Germany
PoliticsEconomyUs PoliticsGermany InflationInterest RatesFederal Reserve
Federal ReserveUs Government
Donald TrumpJerome Powell
- Why did the Federal Reserve lower interest rates?
- The Federal Reserve (Fed) lowered the benchmark interest rate for the second time in a row by 0.25 percentage points, bringing it to a range of 4.5 to 4.75 percent.
- What was the level of inflation in September, and how does it compare to the Fed's target?
- The Fed's decision was made in response to slowing inflation, which fell to 2.4 percent in September, lower than anticipated but still higher than the Fed's target of 2 percent.
- How might Trump's economic policies affect inflation and the Fed's interest rate decisions?
- Trump's planned policies, including high tariffs and tax cuts, are expected to increase inflation, which may influence the Fed's decision on whether to continue lowering rates or maintain a higher interest rate.
- How could Trump's influence affect the Federal Reserve's independence and future leadership?
- While the Fed operates independently of the US government, Trump's influence, including his potential appointment of a new Fed chair in 2026, could significantly affect the course of monetary policy in the coming years.
- What is the uncertainty surrounding Donald Trump's return to the presidency in regards to the Federal Reserve?
- Donald Trump's return to the presidency raises uncertainty about the Fed's future interest rate policy, as he has previously advocated for lower interest rates and criticized Fed Chair Jerome Powell.