The United States Federal Reserve had on Wednesday cut the interest rate by 25 percentage points, to be in the range between 4 per cent and 4.25 per cent. There was an indication that there would be further cuts in the rate in 2025.

The decision was opposed only by the latest President Donald Trump appointee, Stephen Miran, who was sworn in Tuesday morning. Miran voted for a 50 percentage point cut. Two other Trump appointees from the president’s first term went with the majority for the moderate cut.

Political confrontation is simmering between President Trump and Fed Reserve chairman Jeremy Powell. Trump wants greater reduction in interest rates with the expectation that businesses and manufacturers could borrow at cheaper rates and the economy could move forward at a brisker pace. Powell and the Fed Reserve have their eyes set on the inflation rate, which is hovering at 3 per cent,........

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