Nation

Federal Reserve cuts its key interest rate

WASHINGTON — The Federal Reserve cut its key rate by a quarter-point in response to the steady decline in the once-high inflation that had angered Americans and helped drive Donald Trump's presidential election victory this week.

The rate cut follows a larger half-point reduction in September, and it reflects the Fed's renewed focus on supporting the job market as well as fighting inflation, which now barely exceeds the central bank's 2% target. Annual inflation has since fallen from a 9.1% peak in 2022 to a 3 1/2-year low of 2.4%. Asked how Trump's election might affect the Fed's policymaking, Chair Jerome Powell said that "in the near term, the election will have no effects on our decisions."

Wall Street rises after Fed cuts interest rates

NEW YORK — Most U.S. stocks rose as the Federal Reserve cut interest rates again to make things easier for the economy.

The S&P 500 climbed 0.7% Thursday. The Dow Jones Industrial Average was virtually unchanged, and the Nasdaq composite gained 1.5%.

The rate cut was widely expected. What's less certain going forward is how much Donald Trump's presidential victory may change things for the Fed. Chair Jerome Powell said it's too early to know what it will mean for the Fed's policies. Treasury yields remained lower following the Fed's announcement. Bank stocks and smaller companies also lagged the market as other Trump trades lost momentum.

More Americans apply for unemployment

The number of Americans applying for jobless aid ticked up last week but layoffs remain at historically low levels.

The Labor Department reported Thursday that jobless claim applications rose by 3,000 to 221,000 for the week of Nov. 2. That's fewer than the 227,000 analysts forecast. The four-week average of weekly claims, which softens some of the week-to-week fluctuations, fell by 9.750 to 227,250.

Weekly applications for jobless benefits are considered representative of U.S. layoffs in a given week. Continuing claims, the total number of Americans collecting jobless benefits, rose by 39,000 to 1.89 million for the week of Oct. 26. That's the most since late 2021.