Good morning from the City AM liveblog team.
Last night the US Federal Reserve met and agreed to lower interest rates by a quarter-point to between 3.5 and 3.75 per cent.
But it was far from a tranquil meeting, with policymakers battling it out over whether to prioritise high inflation or a poor labour market.
Of the dozen members of the Fed, three objected to the cut, in the biggest level of dissent since 2019.
Meanwhile, over in the White House, president Trump was still unhappy, insisting that there should have been “at least double” the size of the cut.
“This guy, the head of the Federal Reserve, is a stiff,” Trump said of chair Jerome Powell.
But markets reacted positively, with the S&P 500 index closing 0.7 per cent up and Treasury yields fall.
The move has also increased the odds of the Bank of England voting to cut rates when it meets in London next week, after holding rates steady early in November.
Here’s a summary of our top headlines from yesterday:
- Rachel Reeves: Leak to the FT was inaccurate
- Watchdog launches new probe into EY over ‘unauthorised’ audit reports
- Leon to close sites and cut jobs as it enters administration
- Labour rail pledge in doubt after £3bn private contract to run London Overground
- Panasonic sees slump in UK microwave sales amid air fryer boom
- Building Safety Regulator delays ‘unacceptable’, say peers
- Is Microsoft becoming the new Vodafone?
