U.S. Federal Reserve cuts rates by 0.25%, as chair Powell asserts independence

The Fed noted that, while inflation remains somewhat above the 2% target level, it considers the risks related to price growth and employment to be approximately balanced.

The Fed is prepared to adjust its policy if risks arise that could hinder its goals. The regulator stated that it will consider a broad range of information when making decisions on monetary policy, including labor market conditions, inflation, inflation expectations, and financial and international developments.

During a press conference on Thursday, Fed Chairman Jerome Powell emphasized that the economy is stable enough for the Fed not to rush with further rate cuts. He even suggested a potential pause in rate reductions at the December meeting. As the rate approaches the neutral level, the Fed may slow the pace of monetary easing.

Powell also said that Trump’s election victory this week will not have any immediate impact on the central bank’s policy.

“In the near term, the election will have no effects on our policy decisions,” Powell told reporters.

However, he acknowledged that, over time, actions by the government and Congress could affect the U.S. economy, which the Fed will factor into its forecasts.

When questioned on whether he would step down if requested by Trump, the Fed chair simply responded: “No.”

Powell clarified further, stating that, under the law, the president does not have the authority to dismiss or demote the Fed chair. “Not permitted under the law,” he told reporters at a news conference.

Although there has been speculation that Powell might step down before the end of his term in May 2026 if pressured by Trump, he firmly stated his intent to stay in his position regardless.