The Federal Reserve (Fed), The US central bank further announced. Interest rate cut by 25 basis pointsequal to 0.25%. It was the fourth straight decline in the cost of money, which did not further lift the US stock market, fresh from a post-election rally. Donald Trump.
The future of the United States was one of the main topics of the Fed President’s press conference. Jerome Powellwho expressly ruled out the possibility of him resigning before the end of his mandate if requested by the new administration. Powell’s term will expire. 2026 And there are already several candidates to succeed him in the ranks of Trump officials.
The Federal Reserve cuts rates.
A few days after the victory of Donald Trump in the presidential elections in the United States, the Federal Reserve has reduced the interest rate. 25 basis points. So the cost of money in the USA will be between 4.75% and 5%, much higher than in Europe, in addition to the very fast growth of the US economy in the last two years and inflation that is still above the 2% target. is .
The rate cut was widely expected by financial markets, which did not react in any particular way. gave The Dow Jones It was virtually unchanged, falling just a thousandth of a point, while the Nasdaq rose 1.51 percent. The US stock market had already recovered from a two-day gain after Donald Trump’s election victory.
“We’re not on a predetermined path. We make decisions meeting by meeting,” Fed President Jerome Powell said at a press conference announcing the cuts, indicating how the path to lower rates could be. Still depends on gradual reduction in inflation rate. This number was reached in September. il 2,4%2% is very close to the target that most economists consider optimal for a developing country.
Confrontation between Fed President and Trump
Questions from journalists Powell After the November 5 election inevitably revolves around the election of Donald Trump as President of the United States. The future occupant of the White House has repeatedly attacked Powell and his ultra-tight monetary policy, accusing him at some rallies of “damaging the U.S. economy more than Chinese President Xi Jinping.”
Powell, however, dryly replied that, too If the new US president asks him to resign, he won’t.. The Federal Reserve, like most central banks in democracies, is an institution that is largely independent of government. Once a new president is appointed, even a change of presidency cannot force him to resign before the end of his term.
For Powell, that is history. In 2026at the end of the first year of Trump’s presidency. CNN has speculated that the new administration may not make a significant push to avoid a confrontation with Powell and simply wait out his mandate. Possible replacements are former Fed members. Kevin Warsh and Trump’s former chief economist Kevin Haste.
