US interest rates fall for second time as Trump ends spat with Fed boss

US interest rates differ from the Bank of England's set for the UK as it provides a range to guide lenders rather than a single percentage.

Rates were dropped by the Fed as inflation collapsed to just 2.4 per cent.

US interest rates fall for second time in four years as Trump ends spat with Fed boss

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The Fed, which sets an inflation target of two per cent, also welcomed a recent jobs report of the Biden administration was posted in September.

Jerome Powell, who was appointed as chair of the Fed in 2018, developed a fractious relationship with Trump.

The 45th President, who will soon become the 47th President, considered firing Powell after he refused to sharply lower interest rates.

Trump had described Powell as "clueless" and an "enemy" during his first term in the Oval Office.

However, Trump recently stressed he would not fire Powell after his return to the White House.

The 78-year-old promised interest rates would fall upon his return to the White House.

Despite reducing rates remaining under the remit of the Fed, the comments bring into question the independence of the independent agency.

Trump can influence the Fed's decision-making by appointing board members.

Any appointments remain subject to the now Republican-controlled Senate.

The Fed was made independent in 1951 so it could take action to lower inflation free of political interference.