- The Federal Reserve cut interest rates by a quarter of a percent Wednesday and signaled half as many rate cuts in 2025 as initially forecast. Economists say these changes could be in anticipation of Trump’s expansionist monetary policy, promises to raise tariffs, and a crackdown on immigration, which could be inflationary.
President-elect Donald Trump has continued his streak of making economic waves more than a month before he sets foot in the Oval Office again. Despite sentiment that Trump will stimulate the economy, his impending policies promising high tariffs and tax cuts threaten to hike inflation. Those economic dynamics may have nudged the Federal Reserve into adopting a more cautious stance.
