Washington (CNN) — The Federal Reserve cut interest rates by a quarter point Thursday on the heels of the US presidential election earlier this week. It’s the second rate cut since the central bank began to lower borrowing costs in September, though the latest cut is smaller. Analysts at Nomura, on the other hand, fully expect Trump to follow through with his plans quickly, estimating just one rate cut next year. At some point, Fed officials will have to incorporate expected changes in fiscal policy in their official economic projections. Since it’s clear that Fed officials are not in any rush to cut rates, that could mean the Fed stands pat a few times next year.

Source: CNN November 08, 2024 10:14 UTC