The Federal Reserve cut its key rate on Thursday, one of many factors that will decide what kind of economy Americans remember from President Joe Biden’s final days in office — and what President-elect Donald Trump is left with at the start of his second term. The Feds cut the rate by a quarter of a percentage point, which was in line with economist expectations. Fed Chair Jerome Powell said that the job market remains solid, that economic activity has continued to expand, and that consumer spending is resilient.
The Fed’s future: President-elect Trump has talked on the campaign trail about the possibility of the president having greater “say” over the Fed’s decisions. Fed Chair Jerome Powell said the election will have no effects on the Fed’s policy decisions in the near term, adding that they do not yet know the timing or policy substance of the incoming administration.
