The Federal Reserve has cut interest rates for the second time in four years due to concerns about the future direction of the US economy after Republican Donald Trump was elected president. While inflation continues to rise and the job market is stable, the Federal Reserve is taking a cautious approach with rates now set at 4.5%-4.75%. Economic analysts predict that rates will further decrease in the coming months, but Trump's policies on taxes, immigration, and tariffs could complicate the situation by increasing government borrowing and inflation. While the Fed remains optimistic, many are scaling back their expectations for future rate cuts. There are also questions about how Trump's presidency will impact the economy, with Fed Chair Jerome Powell stating that it is too early to make any predictions.
The Federal Reserve has cut its key interest rate for the second time this year, signaling a shift towards supporting the job market and fighting inflation. However, with uncertainties following the presidential election and potential policy changes under the Trump administration, future rate cuts may be unlikely. These future moves could potentially affect mortgage rates, which have already fluctuated in anticipation of changes in the economy and consumer spending.