U.S. Fed cuts benchmark rate by 0.25%p... "Trump impact won't happen in short term"

[Anchor]
At the monetary policy meeting held shortly after the U.S. presidential election, interest rates were cut again following September.

While interested in whether there will be a change in interest rate policy ahead of the Trump era, Fed Chairman Jerome Powell said the outcome of the presidential election would not affect interest rate decisions.

Connect to Washington.

Correspondent Kwon Jun-ki

The Fed cut interest rates as expected, right?

[Reporter]
Yes, the Fed announced a quarter percentage point rate cut after two days of open market committees.

The decision marks the second consecutive rate cut following a 0.5%p big cut in September.

This brings the U.S. benchmark interest rate down to between 4.5 and 4.75%.

Fed Chair Jerome Powell explained the reason behind the rate cut, saying inflation had fallen significantly to 2.1% and employment remained robust.

The Fed's rate cut has narrowed the interest rate gap with Korea again to 1.5%p.

[Anchor]
I'm interested in whether the election of former President Trump will affect interest rate policy, but there was a related comment?

[Reporter]
Yes, since the meeting was held right after the presidential election, the impact of Trump's election came out as a question from the first question at the press conference.


I asked for the Fed's response if Trump's pledges, such as high tariffs and tax cuts, become a reality.

Powell said the election would not affect policy decisions in the short term.

The decision at the Open Market Committee next month, the last monetary policy meeting of the year, was also cautious, saying nothing had been decided yet.

Powell has made it clear that there will be no policy changes with the Trump era in mind, saying that we do not speculate, predict, or presume.

However, when it comes to rising Treasury yields due to Trump's election, he said if it is a persistent and significant phenomenon, it will be reflected in the policy.

[Anchor]
We were also interested in whether Chairman Powell would serve his term with the election of Trump, but there were reports that he would guarantee his term, right?

[Reporter]
Yes, CNN quoted Trump as saying.

It is Trump's view that Powell should remain chairman.

However, he added that there is a possibility that he may change his mind at any time due to Trump's style.

Powell was appointed during Trump's first term in office, and Biden re-appointed in 2022 and will remain in office until 2026.

The term of the Fed chairman is four years, and it is natural in a way that the president guarantees his term because he cannot bring it down in the middle.

However, former President Trump criticized the Fed's interest rate cut in September as election interference, and several remarks that shook the Fed's independence have also been observed to pressure the Fed chairman's future.

When asked about his stance on Trump's criticism at a news conference, Powell also drew a line that he would not express any political views.

So far, I've delivered it from Washington.