Watch: Federal Reserve chairman remarks on interest rate cut

The Federal Reserve lowered its key interest rate by a quarter percentage point Thursday, its second straight rate cut amid easing inflation and a move set to further trim borrowing costs for millions of Americans. But the more modest cut likely foreshadows a slower pace of rate decreases that economic forecasters say was solidified by Republican Donald Trump’s victory in Tuesday’s presidential election. Trump’s tax, trade and immigration policies are expected to partly reignite inflation, which has pulled back substantially since 2022. In a statement after a two-day meeting, officials appeared to voice less confidence that inflation is moving toward the Fed’s 2% target on a long-term basis. With the Fed’s preferred inflation measure staying elevated in September, officials removed a previous assertion that it had “gained greater confidence that inflation is moving sustainably toward” 2%.