Persistently high inflation makes this reduction a tricky one. The interest rate cut is the first in Trump’s second term as well as the first in 2025.
All posts tagged fed funds rate
U.S. inflation falls to 2.3% in April but data remains key as the Fed holds interest rates steady amid growing tariff uncertainty
Inflation fell to 2.3% in April. The Fed is keeping rates steady at 4.25%-4.5% as new tariffs fuel inflation risks, prompting a cautious wait-and-see approach.
The Fed keeps interest rates unchanged as inflation “remains somewhat elevated”
The Federal Reserve keeps its interest rate unchanged, maintaining its target range at 4.25% to 4.5%. When the Fed sets a target for interest rate, it commits itself to adjusting the money supply. To lower the Fed Funds rate, the Fed’s bond trades buy government bonds, increasing the money supply which in turn lowers the…
The Future of the Federal Reserve under Trump
The Fed’s interest rate decision on Thursday coincides with the electoral victory of Donald Trump, who won both the popular and Electoral College votes in a strong political comeback in U.S. history, with promises of lowering inflation.