Fed cuts interest rate by 25 basis points as widely expected

The Federal Reserve cut interest rate by 25 basis points, as widely expected to continue its monetary policy easing cycle. Fed decided, Thursday to lower the policy rate after Donald Trump won the US presidential election.

Fed Chairman Powell’s remarks could provide important clues about the rate outlook. The US Dollar rally could lose steam in case the Fed leaves the door open for another rate cut in December.

Fed announced this recent monetary policy decision following the November policy meeting on Thursday, just barely two days after Donald Trump was elected as the 47th president of the United States. Market participants widely anticipated that the US central bank will lower the policy rate by 25 basis points to the range of 4.5%-4.75%.