Fed Cuts Interest Rates Again, Fed Chair Powell Says He Won’t Resign – One America News Network

November 7, 2024 James Meyers US 0

WASHINGTON, DC - NOVEMBER 07: Federal Reserve Board Federal Reserve Chairman Jerome Powell speaks during a news conference following a Federal Open Market Committee meeting in Washington on November 07, 2024 in Washington, DC. The Federal Reserve cut interest rates the second time this year, cutting its benchmark lending rate by a quarter percentage point as they extend efforts to keep the US economic expansion on solid footing amid concerns about a weakening labor market. (Photo by Kent Nishimura/Getty Images) — Federal Reserve Board Federal Reserve Chairman Jerome Powell speaks during a news conference following a Federal Open Market Committee meeting in Washington on November 07, 2024 in Washington, DC. The Federal Reserve cut interest rates the second time this year, cutting its benchmark lending rate by a quarter percentage point as they extend efforts to keep the US economic expansion on solid footing amid concerns about a weakening labor market. (Photo by Kent Nishimura/Getty Images)

OAN Staff James Meyers
2:05 PM – Thursday, November 7, 2024

The Federal Reserve lowered the federal funds rate for a second consecutive time on Thursday.

The Fed shaved down borrowing costs by 0.25% points, or half the size of its September reduction, according to its statement.

That brings down the federal funds rate to a range of 4.5% to 4.75% from its current 4.75% to 5% level.

With the Federal Reserve’s preferred inflation measure dropping to 2.1% last month, just shy of the Fed’s 2% goal, the central bank is easing off the brakes it applied when inflation hit a 40-year high during the Biden administration. The high borrowing costs have made it more expensive to buy everything from homes to cars.

The Fed’s 0.25% point cut should give consumers a “little bit of relief,” but the initial benefit will be small, according to experts.

Meanwhile, the Fed is expected to continue cutting rates at its next few meetings.

“Once a few more cuts happen over the next few months, the impact will add up to something that moves the needle for the average person struggling with debt,” said Matt Schulz, LendingTree chief credit analyst, in an email. “For now, however, the effect of these cuts won’t be very noticeable.”

Meanwhile, during a press conference on Thursday afternoon, Federal Reserve Chairman Jerome Powell asserted that he would not step down from his position as Fed chief even if President-elect Donald Trump asked him to.

“No,” he said in response to a reporter’s question on whether or not he would leave if Trump asked him to resign.