The Federal Reserve Building in Washington, D.C.
Joshua Roberts | Reuters
The Federal Reserve announced Thursday that it will lower its benchmark rate by a quarter point, or 25 basis points, less than two days after President-elect Donald Trump won the 2024 election.
Economic uncertainty was a prevailing mood heading into Election Day after a prolonged period of high inflation left many Americans struggling to afford the cost of living.
But recent economic data indicates that inflation has been falling back toward the Fed’s 2% target, which paved the way for the central bank to trim rates this fall. Thursday’s cut is the second, following a half-point reduction Sept. 18.
The federal funds rate sets overnight borrowing costs for banks but also influences consumer borrowing costs.
More from Personal Finance:28% of credit card users are paying off last year’s holiday debtHoliday shoppers plan to spend more while taking on debt2 in 5 cardholders have maxed out a credit …