Fed cuts interest rates by 0.25 percentage points

The Federal Reserve (Fed) has lowered the benchmark interest rate by 0.25 percentage points, bringing the range to between 4.5 and 4.75 percent, from a previous 4.75 to 5 percent. This adjustment follows a previous cut one and a half months ago, marking a total decrease of 0.75 percentage points in a short period. Despite Donald Trump’s election as the upcoming president of the USA and the resulting economic uncertainty, the Fed maintained the anticipated rate cut. Economists predict this decision could affect future rate movements and potentially lead to higher rates, especially for long-term loans. Fed Chairman Jerome Powell, appointed by Trump in 2018 and extended by President Joe Biden in 2022, is likely to remain in his position until 2026. The Fed’s role is to ensure a balanced economy, high employment, and stable prices.