Federal Reserve Cuts Interest Rates Amid Economic Uncertainty

The Fed's decision comes after Trump's election victory, aiming to balance inflation control with economic growth.

The Federal Reserve lowered its benchmark interest rate by 25 basis points to a range of 4.5% to 4.75%, marking the second cut this year.
The rate cut follows President-elect Donald Trump's win, with markets reacting positively as major stock indices reached record highs.
Fed Chair Jerome Powell emphasized that the election results would not influence immediate monetary policy decisions, though Trump's policies could have long-term impacts.
Despite the rate cut, consumer borrowing costs such as mortgage and credit card rates remain relatively high, with only modest declines expected.
Economic indicators show signs of a strong output and cooling inflation, but the labor market appears to be softening, prompting the Fed's cautious approach.