The Federal Reserve recently cut interest rates by 25 basis points, aligning with market expectations, but future decisions remain uncertain amid softening inflation and potential policy shifts with the incoming Trump administration. Former Fed Vice Chair Richard Clarida discusses the implications of these developments, including the Fed's approach to monetary policy, inflation outlook, and the influence of political dynamics on economic conditions.
The Federal Reserve recently cut interest rates by 25 basis points, aligning with market expectations, but faces uncertainty ahead. With inflation softening and potential shifts under the incoming Trump administration, the Fed's future decisions are in question, especially amid tensions between President Trump and Chair Jerome Powell. Former Fed Vice Chair Richard Clarida discusses these challenges and the Fed's approach to economic data.
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