Federal Reserve Chairman Jerome Powell announced US interest rates.
The US fight against inflation is over. Now even the world’s largest central bank, the Federal Reserve, has accepted this fact. Apart from this, it has also been indicated that when the EMI loan of common people is going to be reduced. Although the Federal Reserve did not make any changes in the official interest rate on Wednesday, it has hinted that it will cut the interest rates from September. Which was already expected. This means that the interest rates will be reduced in the US after about 4 years.
The impact of this decision will also be seen in the upcoming presidential elections in the United States. The main reason for this is that the Republican Party planned to corner the Democratic Party candidate Kamala Harris by raising the issue of inflation and rising interest rates in the country. At the same time, the Republican Party candidate Donald Trump demanded that the Federal Reserve not make any changes to interest rates after the elections. If the Federal Reserve lowers interest rates in September, which is 100 percent expected, then its impact can be seen in the presidential elections.
The Federal Reserve made no changes
The Federal Reserve of the US central bank has not made any changes to interest rates. The Federal Reserve rates have remained the same for the past year. A year ago, the Federal Reserve had raised interest rates to a 23-year high. However, it was already anticipated that the Federal Reserve would not make any changes to interest rates at the July meeting. The Federal Reserve indicated on Wednesday that it could cut its benchmark interest rate in the coming months. This means that the Federal Reserve has openly indicated that interest rates could be cut in the month of September. The Federal Reserve raised rates aggressively from March 2022 to July 2023, raising the benchmark rate by 5.25 percentage points to combat the worst burst of inflation in 40 years.
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Rate cuts have nothing to do with elections
According to a report by CNBC, Federal Reserve Chairman Jerome Powell said that the rate cut at the September meeting will have no bearing on the upcoming presidential election. He said that if the Fed cuts rates at the central bank meeting, it will be “absolutely” apolitical. At the same time, the Fed chief warned that it should not be taken for granted at all that the cut will definitely happen. Powell said that we never use our devices to support or oppose any political party, politician, or political outcome.
He also said the central bank’s economic forecasts do not take into account who will win the presidency. Powell said we will never try to make policy decisions based on the outcome of an election that has not yet taken place. That “will be a line we will never cross.” He also stressed that the central bank is an apolitical agency.
stock market rise
Taking into account the policy decisions of the Federal Reserve and the trend of the coming days, the US stock market is witnessing an upward trend. The Dow Jones is trading with a gain of 0.24 percent. While the S&P 500 is experiencing an increase of 1.58 percent. At the same time, an increase of about 3 percent is observed on the Nasdaq. The dollar index is recording a decline of 0.46 percent. The price of gold on the international market has approached $2,500. At the same time, the price of silver has exceeded $29 per ounce. The price of US crude oil has increased by 5 percent and has exceeded $78 per barrel.
