On Dec. 10, the Federal Reserve voted to lower the federal funds rate by 25 basis points. A basis point is one one-hundredth of a percentage point. Mortgage lenders had been expecting a cut, and mortgage rates had fallen in the weeks ahead of the meeting. This move was largely predicted by analysts, despite tensions among central bankers. Still, the path to cutting was not unanimous or obvious.
Trump has the opportunity to influence economic policy through key appointments: the head of the Bureau of Labor Statistics and a Federal Reserve Governor. Both positions have recently become available.