Fed ready for rate cuts while White House influence raises eyebrows

Fed plans another interest rate reduction following inflation cool-down. White Houses potential involvement in monetary decisions and new economic plans create uncertainty for future Fed moves

November 7 2024 , 08:15 AM  •  771 views

Fed ready for rate cuts while White House influence raises eyebrows

The Federal Reserve is set to announce its second back-to-back interest-rate cut this thursday (a move thats linked to reduced inflation which previously hit american wallets hard and helped Donald Trump win the presidency)

The post-election landscape brings new questions about future Fed choices — Trumps proposed economic policies might push prices up; creating a tricky situation for decision-makers. The presidents public statements add extra complexity: hes mentioned that the White House should have input on interest-rate decisions which isnt standard practice

The central banks independence — a long-standing principle thats key to economic stability — faces new scrutiny. Trump wants more say in monetary policy: something that makes financial experts nervous about possible political pressure on what should be non-partisan choices