Following Trump Victory, Fed Proposes Rate Cuts

The Fed has now considered cutting rates for the first time since September, amid the Trump victory in the 2024 presidential race.

Donald Trump has pledged to his supporters that he will cap interest rates for the Fed, as well as for credit cards. He argued that higher interest rates crippled Americans' ability to acquire stable loans and mortgages.

In reaction to his victory, Fed chair Jerome Powell has now considered cutting rates before the Trump ascendancy to the White House. Economic signs warrant the nation's ability to cut rates further, by up to a half-of-a-basis-point.

Powell was first appointed by President Trump during his first term to be the chair of the Federal Reserve. Powell hopes that, by cutting rates, he could once again get nominated by the president for another term in the Fed.

Inflation has cooled but remained persistent, and job growth has been slowing. Furthermore, recent CPI reports indicate gradually rising consumer prices.