United States: The Fed Lowers Rates by a Quarter Point

The U.S. central bank, known as the Fed, has unanimously decided to lower its benchmark interest rate by a quarter percentage point following Donald Trump’s reelection to the White House. This reduction brings the rates down to a range of 4.50% to 4.75%.

This decision follows a half-point decrease enacted in September and marks the first reduction since March 2020. In a statement released after their meeting, the Fed’s Monetary Policy Committee (FOMC) indicated that “labor market conditions are easing,” while also acknowledging that “inflation has made progress toward the 2% target (…) but remains elevated.”