On Thursday, following President Trump’s landslide victory, the Federal Reserve reduced interest rates by 25 basis points, or 0.25%.
The latest rate cut comes after the Fed slashed rates by 50 basis points in September.
The benchmark rate is between 4.5% to 4.75%
Fed Chairman Jerome Powell also informed reporters that he would not resign from his position, even if President Trump asked him to step down.
“If [Trump] asked you to leave, would you go?” a reporter asked Fed Chair Powell.
“No,” Powell replied.
“Do you think that legally you’re not required to leave?” the reporter asked Powell in a follow-up question.
“No,” Powell said.
As reported by CNBC:
The Federal Reserve approved its second consecutive interest rate cut Thursday, moving at a less aggressive pace than before but continuing its efforts to rightsize monetary policy.
In a follow-up to September’s big half percentage point reduction, the Federal Open Market Committee lowered its benchmark overnight borrowing rate by a quarter percentage point, or 25 basis points, to a target range of 4.50%-4.75%. The rate sets what banks charge each other for overnight lending but often influences consumer debt instruments such as mortgages, credit cards and auto loans.
Markets had widely expected the move, which was telegraphed both at the September meeting and in follow-up remarks from policymakers since then. The vote was unanimous, unlike the previous move that saw the first “no” vote from a Fed governor since 2005. This time, Governor Michelle Bowman went along with the decision.
WATCH:
Reporter: “If [President-elect Trump] asked you to leave, would you go?”
Fed Chair Jerome Powell: “No.”
Reporter: “Do you think that legally you’re not required to leave?”
Powell: “No.” pic.twitter.com/OoSDgvkZ8j
— Yahoo Finance (@YahooFinance) November 7, 2024
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