The impact of Donald Trump’s victory in the United States is now clearly visible at the Federal Reserve Bank of the United States. The Federal Reserve has cut interest rates less than expected in the November cycle. There was speculation that the US Central Bank would cut interest rates by 0.50 percent. But after Donald Trump’s victory, interest rates were reduced by 0.25 percent. By the way, the Federal Reserve was also expected to keep interest rates as they were.
But the reduction in interest rates, also after Donald Trump’s victory, is considered a big event. So the US stock market is booming. On the other hand, a drop is observed in the dollar index. The effect of which is visible in the gold prices in the international market. In the month of September, the Federal Reserve had seen an interest rate reduction of 0.50 percent. Let us also tell you what level the official rates in the United States have reached after the second consecutive cut.
The Fed cuts rates by 0.25 percent
As announced by the chairman of the US Federal Reserve, interest rates were reduced by 0.25 percent. This means that the Fed’s rate cut range has reached 4.50-4.75 percent. The American Central Bank has cut the official interest rate for the second consecutive time. In these two months, the Federal Reserve has made a total cut of 0.75 percent. Federal Reserve Chairman Jerome Powell has indicated another 0.25 percent rate cut at the December meeting.
This means that by the end of the year we could see a one percent cut in the Federal Reserve rate. By the way, before the election results in the United States, the Federal Reserve’s rate cut was estimated at 0.50 percent. But after Trump’s victory, this estimate decreased and reached 0.25 percent. What’s special is that Trump has never been in favor of aggressive rate cuts. This is the reason why the cut has been smaller than expected. But the cut has happened and the stock and commodity markets see it as a big event.
American stock market boom
Following the Fed’s rate cut, the US stock market rises. According to the data, Nasdaq is trading at 19,210.81 points with an increase of 1.20 percent or 227.35 points. While during the trading session, the Nasdaq had hit a 52-week all-time high of 19,256.99 points before the rate cut. On the other hand, the S&P 500 is trading at 5,963.03 points with a gain of 0.57 percent or 33.99 percent.
During the trading session, the S&P 500 reached an all-time high of 5,972.88 points. On the other hand, profit bookings are currently seen in the Dow Jones. The Dow Jones is trading at 43,704.77 points with a drop of 0.58 percent. While during the trading session the Dow Jones reached a record level with 43,810.29 points. This means that the Dow Jones is trading about 100 points below the all-time high.
There is an increase in these stocks.
If we talk about stocks, Tesla shares are currently up more than 3 percent and the company’s shares have reached a record high of $299.75. Apple shares have seen an increase of around 2 percent. Amazon shares are up 1.26 percent. At the same time, shares of Google’s parent company Alphabet rise 1.63 percent. Shares of Meta, Facebook’s parent company, are up 3.53 percent. Microsoft shares are up one percent. According to experts, even after Trump’s victory there has been a reduction of at least 0.25 percent. Due to which major stocks in the stock market are experiencing an increase.
