By Howard Schneider | Reuters
Summary:
- Fed likely to cut rates by a quarter of a percentage point
- Economic outlook murkier following Trump’s election win
- Impact of import tariffs, other policies hard to predict
WASHINGTON, Nov 7 (Reuters) – The Federal Reserve is expected to reduce its benchmark policy rate by a quarter of a percentage point at the end of its policy meeting on Thursday, a decision that may seem a footnote given the uncertain economic terrain the U.S. central bank may soon be navigating under a second Trump administration.
Former President Donald Trump’s victory in Tuesday’s presidential election and the prospect that his fellow Republicans will control both houses of Congress in January puts in play policy changes from import tariffs to tax cuts to stifled immigration that could rewrite the outlook for economic growth and inflation that Fed policymakers had expected to face next year.
