From Morningstar: 2024-11-08 05:07:37

The US presidential election results haven’t impacted the Federal Reserve’s plans. The central bank cut the federal-funds rate by 0.25 points to a target range of 4.50%-4.75%. Since lowering rates in September 2024, they have cut a total of 0.75 points. Expectations for future rate cuts have shifted due to a stronger economy and labor market, and concerns over Trump’s proposed tariffs and potential deficit spending. The market-implied probability of a 25-point rate cut at the Fed’s December meeting is about two-thirds. Fed Chair Jerome Powell stated the election results won’t affect near-term decisions and that the Fed will wait for new policies before making adjustments. Powell did not provide much guidance on future rate cuts, leading to expectations of a 25-point rate cut in December. Bond yields and market expectations didn’t change significantly following Powell’s comments.



Read more at Morningstar: Fed Sticks to Rate Cut Plans, for Now