US expected to cut interest rates as Trump prepares for office

As investors digest Donald Trump’s election victory, the US central bank is set to announce its latest decision on interest rates around 14:00 EST (19:00 GMT).

The Federal Reserve is widely expected to cut its key rate for the second month in a row as the pace of price rises eases.

Fed officials will also be grappling with concerns that the president-elect’s policies, including higher import taxes, may trigger more inflation.

Trump’s win on Wednesday sent the US dollar soaring by about 1.65% against other currencies, including the pound, euro and Japanese yen.

Trump has also said he may want to have a say in the central bank’s decisions, potentially threatening its independence. In last term in office, he criticised Chair Jerome Powell after rates were hiked to tackle inflation.

Meanwhile, the UK’s latest interest rate announcement is due at 12:00 GMT – a cut to 4.75% is expected