Fed cuts rates but inflationary risks under Trump loom large

Central bank's rate lowering could slow next year as Trump promises big tariffs

20241107N Powell Reuters

Federal Reserve Chairman Jerome Powell declined to speculate on what a second Trump administration might mean for the central bank's decision-making. © Reuters

JACK STONE TRUITT, Nikkei staff writer

NEW YORK -- The U.S. Federal Reserve cut interest rates by a quarter of a percentage point two days after Donald Trump's election victory, an outcome that renewed inflation concerns due to his tariff-heavy economic plan.

The cuts on Thursday brought the benchmark overnight interest rate to the 4.50%-4.75% range. It was the second consecutive cut following a September meeting that saw the first rate cut in four years.

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