Ex-Fed Official Mester Predicts Limited Rate Cuts Post-Trump Win

Former Federal Reserve policymaker Loretta Mester suggests that the Fed may implement fewer interest rate cuts next year than previously expected, due to President-elect Donald Trump's proposed tariffs. Markets have adjusted their forecasts, anticipating fewer cuts as Trump's fiscal policies, including significant tariffs on imports, could impact the global economy. Economists now expect a total of 1.25 percentage points in rate cuts by the end of 2025, with the Fed's outlook likely to evolve as more details of Trump's fiscal plans emerge.