Fed Chief Powell Affirms Stability Amid Trump's Fiscal Challenges

The Federal Reserve cut interest rates amidst changes expected under President-elect Trump's administration. Fed Chair Jerome Powell emphasized that these changes would not immediately affect monetary policy. The Fed will continue to adjust its policy as needed to meet inflation and employment goals.

The Federal Reserve announced a quarter-point cut in interest rates as it braces for potential economic shifts under President-elect Donald Trump's upcoming term. The move comes amid a landscape where rapid fiscal and tax policies could complicate the Fed's dual goals of managing inflation and employment.

Chair Jerome Powell reiterated that the election results would not immediately impact U.S. monetary policy. However, as the new administration sets its policies, the Fed will continuously evaluate economic indicators to navigate the economy towards stable inflation and robust employment.

Powell, who remains steadfast despite political pressures, will guide the Fed through these nuanced economic times. As inflation trends downwards, the Fed aims to establish a neutral interest rate that balances economic growth without overstimulation.

(With inputs from agencies.)