Sunday, December 22, 2024

US cuts interest rates as Trump election raises uncertainty

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The Fed started to reverse course in September, slashing rates by a bigger-than-usual 0.5 percentage points, saying it was confident that the pace of price rises in the US was stabilising.

Inflation in the US stood at 2.4% in September, down from more than 9% in June 2022, according to the latest official figures.

The cut announced on Thursday, which was widely expected and unanimous, lowered rates by a further 0.25 percentage points.

Mr Powell said on Thursday officials remained equally focused on keeping prices stable and the job market healthy.

Though concerns flared earlier this year about rising unemployment, those quietened in September, after data showed an unexpectedly strong burst of hiring.

However, the latest figures showed almost non-existent job growth in October, when the country was grappling with hurricanes and strike actions.

He said officials expected to continue to cut rates, but how fast and how far remained to be seen, but resisted questions seeking more precise guidance.

“We don’t think it’s a good time to be doing a lot of further guidance – there’s a fair amount of uncertainty,” he said. “The point is to find the right pace and destination as we go.”

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