As the Fed seeks a neutral stance, Trump’s fiscal agenda may unleash inflationary forces that could complicate the central bank’s efforts to maintain growth.
The Federal Reserve’s 0.25 percentage points rate cut comes amid heightened economic uncertainty, as President-elect Donald Trump prepares to assume office. The combination of monetary easing and anticipated fiscal changes sets the stage for what could be a profound shift in US economic policy. The Fed’s approach to rate cuts under Chair Jerome Powell seeks to manage inflation while maintaining stable growth, but the incoming administration’s aggressive proposals on taxes, tariffs, and immigration could introduce fresh complexities into the mix.
Under Powell’s leadership, the Fed has focused on restoring inflation levels closer to its 2% target while managing stable employment….
