Fed's Cautious Rate Cut, Trump's Successor: A Delicate Balance

The Federal Reserve has lowered US borrowing costs, but signals a more cautious approach to future rate cuts, potentially displeasing the White House. The central bank is navigating pressures from inflation and a weaker job market. Despite recent weakness in US hiring, three committee members voted against any change. The Fed projects economic growth pickup and jobless rate ease next year, with price growth slowing to 2.4% by the end of 2026. Powell notes the Fed funds rate is now within a neutral range, allowing for observation of economic evolution. However, uncertainty looms with Powells departure and potential nomination of a successor favoring rapid rate reductions, leaving bond markets skittish. The Daily News Now! — Every city. Every story. AI-powered. Hosted on Acast. See acast.com/privacy for more information.