11/07/2024

Fed Reserve Cuts Rates

Powell says he won't resign if asked by Trump

The Federal Reserve cut its key interest rate Thursday by a quarter-point in response to the steady decline in the once-high inflation that had angered Americans and helped drive Donald Trump's presidential election victory this week.

The rate cut follows a larger half-point reduction in September, and it reflects the Fed's renewed focus on supporting the job market as well as fighting inflation, which now barely exceeds the central bank's 2 percent target.

Thursday's move reduces the Fed's benchmark rate to about 4.6 percent, down from a four-decade high of 5.3 percent before September's meeting. The Fed had kept its rate that high for more than a year to fight the worst inflation streak in four decades. Annual inflation has since fallen from a 9.1 percent peak in mid-2022 to a 3 1/2-year low of 2.4 percent in September.

Please select this link to read the complete article from The Associated Press.