US Federal Reserve cuts interest rate as markets weigh Trump's potential return

The US Federal Reserve cut the benchmark interest rate by 25 basis points to a range of 4.50% to 4.75% on November 7. This follows a larger cut in September, but markets reacted negatively to the Fed Chair's uncertain outlook on future rate changes. Experts anticipate further rate cuts through 2026, influenced by economic growth and inflation. The potential return of Donald Trump as president raises questions about the Fed's independence and how his policies might affect inflation and interest rates. Fed Chair Jerome Powell stated he would not resign if Trump requested it and emphasized that the presidential election outcome would not impact near-term policy decisions. The Fed maintains significant autonomy, and any changes in leadership would be complex.