Overview

• 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.