New Delhi: The US central bank Federal Reserve has once again cut interest rates. The bank announced a reduction of 25 basis points or .25 percent in interest rates on Thursday. Now the bank's key interest rate has come down to 4.6 percent, which was 5.3 percent before the September meeting of the Federal Reserve. In September, the bank had cut interest rates by half a percent.

Federal Reserve cuts interest rates

Inflation in the US has now come close to the central bank's target of two percent. This is helping the Federal Reserve to cut interest rates. Inflation in the US had reached a four-decade high of 9.1 percent in mid-2022, which came down to 2.4 percent in September this year.

Inflation in America has remained at a high level for about one and a half years

Experts say that the high inflation rate in the US for about one and a half years helped Donald Trump win the recent presidential election because people were struggling with expensive food items and expensive loans.

I will not resign even if Trump asks me to do so: Jerome Powell

US Federal Reserve Chairman Jerome Powell said on Thursday that he would not resign if President-elect Donald Trump asked him to step down prematurely. He said that the law does not allow the dismissal of any of the Fed's seven governors. Powell's term as Fed chairman ends in 2026.

Trump targeted Powell several times

In his election campaign, Trump has repeatedly accused Jerome Powell, the chairman of the US Federal Reserve, who was first appointed by Trump to run the US central bank during his tenure.

President-elect Trump has also said he would like to have at least a say in setting the Fed’s interest rates, which is not currently allowed under the bank’s dual mandate to act independently of Congress to tackle both inflation and unemployment.

Fed governors are nominated by the president, and appointed by the Senate for a 14-year term. If a Fed governor retires, they can also be appointed for the remainder of a 14-year term.