Fed Chair Jerome Powell is likely to face questions about the US elections • AFP Photo credit: MANDEL NGAN
– ‘Tug of war’ – Both Harris and Trump proposed policies on the campaign trail that independent analysts say would increase the size of the deficit, pushing up the overall US debt pile and potentially raising the cost of government borrowing as a result.
The US Federal Reserve is widely expected to cut interest rates by a quarter point Thursday, looking beyond the election results to continue easing borrowing costs on the back of cooling inflation.
The second day of interest rate deliberations began at 9:00 am local time (1400 GMT) in Washington, as scheduled, the Fed said in a statement. The decision will be published at 2:00 pm local time, followed by a press conference from Fed Chair Jerome Powell.
The Fed sits just a short walk from the White House, where Democratic President Joe Biden will soon hand back the keys to Donald Trump following the Republican’s election win.
Despite the political whiplash, analysts expect Fed policymakers will want to eschew any drama, and focus on their job.
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