ABC News - Fed cuts interest rates, delivering relief for borrowers
The Federal Reserve has announced a quarter-point interest rate cut, marking the third consecutive reduction. However, future cuts are uncertain as the Fed now projects fewer rate cuts next year, with expectations shifting from four to two. This uncertainty is influenced by potential economic changes under President-elect Trump, including proposed tariffs on Canada and Mexico, which could impact inflation. If inflation rises, the Fed may reconsider further rate cuts. Additionally, the Supreme Court is set to hear arguments regarding a potential TikTok ban, which could affect many jobs and advertising revenue if enforced. TikTok argues the ban is unconstitutional, while the government cites national security concerns due to its Chinese ownership.
Key Points:
- Federal Reserve cut interest rates by a quarter point, marking the third consecutive cut.
- Future rate cuts are uncertain, with projections reduced from four to two next year.
- Economic policies under President Trump, such as tariffs, could influence inflation and Fed decisions.
- Supreme Court to hear arguments on a potential TikTok ban, impacting jobs and advertising revenue.
- TikTok argues the ban is unconstitutional, while the government cites national security concerns.