US Federal Reserve shrugs off political uncertainty, eases rates with quarter-point cut
Fed chairman Jerome Powell is expected to be questioned on Thursday about economic impact of Trump’s US election victory
The US Federal Reserve shrugged off political uncertainty in Washington and moved ahead with a quarter-point rate cut on Thursday, easing monetary policy further as inflation continues to cool.
“Labour market conditions have generally eased” since earlier in the year, the Fed said, noting continuing progress to bring inflation down towards the bank’s long-term target of two per cent.
The rate cut builds on the Fed’s action in September, when it kicked off its easing cycle with a large reduction of half a percentage-point, and pencilled in additional cuts for this year.
The Fed’s favoured inflation gauge eased to 2.1 per cent in September, while economic growth has remained robust.
