The Federal Reserve (Fed) at its early morning meeting has decided to lower interest rates by a quarter of a percentage point to support economic growth and ensure a stable labor market.
This is the second cut in a row, as the Fed wants to ensure a strong economy and steady job growth.
Fed Chairman Jerome Powell has insisted that he will not 'resign' from his position, despite re-elected President Trump asking him to step down.
Powell stated that such removal is not permitted by law.
Powell emphasized that the election will not affect the Fed's decision in the short term.
He also noted uncertainty over potential new policies, which could affect inflation and employment in the future.
Although the economy is showing resilience, with growth at an annual rate of 2.8% last quarter, there are signs of a slight slowdown, particularly in job growth and inflation.
The Fed's cautious approach aims to manage inflation and maintain employment rates without rapid changes to borrowing costs.
Powell stressed the importance of stability, especially given the recent rise in bond yields and mortgage rates, which has affected the housing market.
The Fed aims to balance its goals amid potential future economic changes.
