Fed's Interest Rate Cut Pace Expected To Slow: Economists Weigh Trump's White House Return

The Federal Reserve lowered interest rates by 0.25 percentage points on Thursday, bringing the federal funds rate to a range of 4.5% to 4.75%. Economists are weighing in on what the policy path ahead may look like. 

Michael Brown, senior research strategist at Pepperstone, sees the Fed continuing to cut rates by 25 basis points at each meeting until a neutral rate of around 3% is reached next summer. Brown noted that some of Trump's policies, tariffs in particular, could be reflationary. 

He cautioned that by early next year the FOMC will "likely need to take policy off its current ‘autopilot' setting, and become considerably more nimble."

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