I won’t quit if Trump asks me to leave, says Fed chief

The chairman of the Federal Reserve has said he would refuse to resign if Donald Trump asked him to step down.
Jerome Powell told reporters it would be unlawful for any President to fire him, following speculation that Mr Trump could look to replace the Fed chairman following his victory.
Mr Trump has previously suggested he would like to set interest rates himself and reports earlier in the year said aides had drawn up plans to oust the Fed chairman to give the President a greater say in monetary policy.
Mr Powell was speaking to reporters in Washington after the Fed cut interest rates by 0.25 percentage points to a target range of 4.5pc to 4.75pc in an early boost for Mr Trump.
Inflation and interest rates were a key issue in the election and were cited as a significant factor in Kamala Harris’s defeat.
When pressed by reporters on whether he would step down if asked to, Mr Powell simply said: “No.”
In response to further questions about what legal mandate the President would have to demote him, Mr Powell said it was “not permitted under the law.”
Hours earlier CNN had reported that Mr Trump was prepared to let Mr Powell see out his term ending in May 2026, citing an anonymous senior advisor to the President elect.
Mr Trump’s public comments on the matter suggest he desires a role in setting US interest rates. He told reporters in August: “I feel the president should have at least [a] say in there… I think that in my case, I made a lot of money, I was very successful, and I think I have a better instinct than in many cases, people that would be on the Federal Reserve or the chairman.”
The Wall Street Journal reported in April that aides had drawn up a range of proposals for how monetary policy could be run in a second Trump administration, including rolling back the independence of the central bank and ousting Mr Powell.
Mr Powell was originally appointed by Mr Trump to head the Federal Reserve during his first term as President. However, the Republican has been critical of Mr Powell’s leadership since then.
He accused the chairman of having “no guts, no sense, no vision” in 2019, claiming he was not cutting interest rates fast or far enough. Mr Trump has previously also questioned whether Mr Powell was a “bigger enemy” to the US than China’s leader Xi Jinping.
The Fed’s decision to lower interest rates for the second meeting in a row came despite speculation that Mr Trump’s policies may stoke inflation. The Republican campaigned on a promise to introduce aggressive tariffs, which would likely push up the cost of imported goods from China by 60pc if implemented.
Bank of England Governor Andrew Bailey warned that Trump’s plans to vastly increase import taxes risked splintering global markets, saying tariffs spur a “fracturing of the world economy”.
He told LBC: “If the world becomes more closed the cost of trade goes up – protectionism, that’s not a good thing.”
Mr Powell said it was too early to tell what the impact of Mr Trump’s election would be on the economy. He said: “In the near term, the election will have no effects on our policy decisions. We don’t guess, we don’t speculate, and we don’t assume.”
The S&P 500 stock index and the tech heavy Nasdaq rose in the wake of the Fed’s announcement and hit another record close on Thursday night following a Wall Street surge on news of Mr Trump’s victory.
Mr Trump is returning to the White House at a time of falling borrowing costs and Mr Powell left the door open for another interest rate cut in December.
He told reporters: “We continue to be confident that with an appropriate recalibration of our policy stance, strength in the economy and the labour market can be maintained with inflation moving sustainably down to 2pc.”
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The outlook for the US economy is “uncertain”, but it is continuing to “expand at a solid pace”, the US Fed said as it cut interest rates. It said:
Recent indicators suggest that economic activity has continued to expand at a solid pace. Since earlier in the year, labour market conditions have generally eased, and the unemployment rate has moved up but remains low. Inflation has made progress toward the committee’s 2pc objective but remains somewhat elevated.
The committee seeks to achieve maximum employment and inflation at the rate of 2pc over the longer run. The committee judges that the risks to achieving its employment and inflation goals are roughly in balance. The economic outlook is uncertain, and the committee is attentive to the risks to both sides of its dual mandate.
The US Federal Reserve cut interest rates on Thursday night in a boost for incoming president Donald Trump.
The central bank voted to lower rates by a quarter of a percentage point, two days after the worries about the economy under the Democrats helped propel Mr Trump back into power.
It said that “economic activity has continued to expand at a solid pace” while “inflation has made progress toward the committee’s 2pc objective but remains somewhat elevated”. It warned, however, that “the economic outlook is uncertain”.
The US federal funds rate is now 4.5pc to 4.75pc from 4.75pc to 5pc previously.
The decision is a boost for the economy as Donald Trump prepares to take up office again in the White House amid promises of a stronger economy under his leadership.
His election chances were boosted by a cost of living crisis and higher interest rates under Joe Biden in the aftermath of the Covid pandemic. Voters remembered better days under the first Trump administration.
The Fed’s cut came despite the potential of higher inflation from Mr Trump’s policies. He is pushing for tariffs and other policies that economists say would drive prices higher, along with the economy’s growth.
Before Thursday evening’s decision, traders had already begun paring forecasts for how many cuts to interest rates the Fed will deliver next year as a result of Mr Trump’s re-election.
Expectations for such cuts have been a major reason the S&P 500 has set dozens of records already this year.
Speaking at a press conference, Fed chairman Jerome Powell said that “in the near term, the election will have no effects on our [interest rate] decisions”.
“We don’t know what the timing and substance of any policy changes will be. We therefore don’t know what the effects on the economy would be,” he added. “We don’t guess, we don’t speculate and we don’t assume.”
In advance of the Fed decision, the Bank of England cut interest rates by a quarter point on Thursday for only the second time since 2020, but said future reductions were likely to be gradual, as it saw higher inflation after the new government’s first budget last week.
The Fed cut came on the day CNN reported that a senior adviser to Mr Trump had indicated that the President-elect is likely to allow Mr Powell to serve the remainder of his term as the Federal Reserve chair, which ends in May 2026.
Donald Trump is reportedly minded to let the chairman of US Federal Reserve remain stay in his job, despite repeatedly lobbing criticism at him. 
CNN said that a senior adviser to Mr Trump had indicated that the President-elect is likely to allow Jerome Powell to serve the remainder of his term as the Federal Reserve chair, which ends in May 2026.
….My only question is, who is our bigger enemy, Jay Powell or Chairman Xi?
Mr Trump appointed Mr Powell to the role but later criticised his decisions, accusing the Fed chair of having “no ‘guts’, no sense, no vision! A terrible communicator!”
In April, The Telegraph reported that Donald Trump’s aides had drawn up secret plans to oust Mr Powell.
The UK will cut interest rates three times next year, leading economists have said, after a steer from the Bank of England today.
Robert Wood and Elliott Jordan-Doak at Pantheon Macroeconomics said:
Rate-setters accompanied [today’s rate cut] decision with a more cautious message than expected. In response and also factoring in the implications of the US election outcome … we change our Bank of England interest rate forecast.
We now look for the MPC [Monetary Policy Committee] to cut Bank Rate by [a quarter of a percentage point] in February, May and November, taking it to 4.0pc at end-2025.
Previously, we saw four cuts in 2025. We expect one further rate cut in May 2026, resulting in a 3.75pc terminal rate…
The MPC seems worried about the Budget, saying that “particularly the increase in employer NICs and the [National Living Wage] was likely to increase the overall costs of employment”.
Bentley has pushed back plans to go fully electric by five years as driver uptake of battery-powered cars continues to fall short of the industry’s hopes.
In an announcement on Thursday, bosses confirmed that the British marque will switch to an all-electric lineup by 2035 instead of 2030.
It comes months after Bentley delayed the launch of its first electric vehicle (EV) from 2025 to 2026. Originally envisaged as a grand tourer, it will also be a “luxury urban SUV”, the company said.
Frank-Steffen Walliser, Bentley’s chief executive, admitted that there was “not a lot of demand” among the company’s existing customers for electric models, amid a wider slowdown in EV sales across the industry this year.
But he said executives were betting on demand bouncing back by 2026 when the new car launches.
Read the full story…
The pound regained some of this week’s losses against the dollar after the Bank of England signalled a cautious approach to cutting interest rates.
Sterling rose 0.81pc to 1.2988 dollars this afternoon, following the Bank’s announcement that it would cut rates by a quarter point to 4.75pc.
Andrew Bailey, the Governor, said rates should fall “gradually”, saying the Bank should not cut “too quickly or by too much”, dampening bets of another reduction in December.
Matthew Ryan of trading firm Ebury said the boost to the pound came as investors “dial back their bets for UK cuts”.
Sterling had fallen against the dollar in the wake of Donald Trump’s US election win on Wednesday, but reversed some of the losses. It was up 0.18pc against the euro at 1.2025.
Sir Keir Starmer’s Government must slash planning approval times for major infrastructure projects if the UK’s electricity network is to reach zero emissions by 2030, National Grid’s chief executive has suggested.
John Pettigrew warned that hopes for decarbonising the grid over the next decade would quickly fade without an urgent shake-up of Britain’s planning processes.
Mr Pettigrew, who is plotting 17 major onshore and offshore transmission projects and many more smaller ones to meet the UK’s needs for low-carbon electricity, said the UK must cut the time taken to approve projects to reach the target.
Read the full story…
European stocks regained ground on Thursday, boosted by technology and resources shares, while the FTSE 100 dipped after the Bank of England cut interest rates but projected higher inflation following the Government’s first budget.
The pan-European Stoxx 600 closed 0.7pc higher, powered by a 2.2pc bounce in the tech sector. The car industry also added 2.2pc after a more than 2pc decline on Wednesday.
The FTSE 100 was the only stock index among major European benchmarks that ended in the red, down 0.3pc.
The Bank of England said the Government’s plans were likely to add almost half a percentage point to inflation at its peak in just over two years’ time and cause it to take a year longer to return sustainably to the central bank’s 2pc target.
Jeremy Batstone-Carr, at Raymond James Investment Services, said:
The Chancellor’s decision to loosen fiscal policy is expected to provide a boost to demand in the medium term, though the MPC remains wary.
A cautious approach going forward also nods in response to the results of the U.S. presidential election this week, the impact of which on future trade policy and the global economy is yet to be established.
The FTSE 250 mid-cap index rose 0.9pc, helped by a 13pc jump in electronics products distributor RS Group following its first-half results.
Donald Trump’s plans to slash regulation will fuel a new stock market rally, a US investment bank has said.
The S&P 500, the main index of corporate America, could rise by another 11pc by the the end of June 2025, analysts at Evercore ISI said.
The bank’s senior managing director, Julian Emanuel, told clients that the US bull runs was “still an infant”. He said: “This market will be driven higher by the policy prospect of deregulation in [Washington] DC.”
It comes despite worries that the US index, which has risen by 93pc over the past five years, could be overpriced. The FTSE 100 has risen by less than 11pc over the same period.
The bank has set a price target for the S&P 500 of 6,600 points by the end of June, compared to 5,968 today.
The number of Americans filing new applications for unemployment benefits rose slightly last week, suggesting no material change in the labour market and reinforcing views that hurricanes and strikes had resulted in job growth almost stalling in October.
Though the jobs market is easing, wage pressures are showing signs of not abating at the same pace, casting a shadow on the inflation and interest rate outlook. Unit labour costs increased at solid clip in the third quarter, other data from the Labour Department showed on Thursday.
Economists said the strong rise in labour costs, which was accompanied by a sharp upward revision to the second-quarter data, could worry Federal Reserve officials, who were wrapping up a two-day policy meeting.
Paul Ashworth, chief North America economist at Capital Economics, said:
Unit labour costs growth is the single biggest determinant of labour-intensive core services prices. Unless unit labour costs growth slows again, it will be a lot harder for Fed officials to claim that inflation can be sustained at 2pc.
Initial claims for state unemployment benefits increased 3,000 to a seasonally adjusted 221,000 for the week ended Nov 2, the US Labor Department said.
A major recycling plant at Avonmouth in Bristol is to close, as its owner blames an “absence of planned legislation” for making it unviable along with weak demand for recycled plastic.
Viridor, which was bought by KKR in 2020 in a £4.2bn deal, is also reviewing the future of its Rochester site.
The company said:
Viridor’s UK mechanical recycling operations have been negatively impacted by persistently and increasingly challenging market conditions, and the absence of planned legislation to increase rates of plastic recycling in the UK.  
Despite sustained investment from Viridor over the last four years to develop its mechanical recycling capability, including building and commissioning the Avonmouth polymers recycling facility and expanding production, recycling rates are below where they were projected to be in 2020.
Policies announced and planned under the previous Government to increase UK recycling, as set out in the 2018 Resources and Waste Strategy, have been repeatedly delayed and have not, to date, been implemented.
The Guardian is offering counselling to staff as it vowed to support its workforce after Donald Trump’s “upsetting” US election victory this week.
In an email to staff, The Guardian’s editor Katharine Viner said the election had “exposed alarming fault lines on many fronts” and urged journalists based in the UK to contact colleagues in the US “to offer your support”.
Ms Viner said that the result would be “upsetting for many others”, according to the memo seen by Guido Fawkes, adding: “If you want to talk about it, your manager and members of the leadership team are all available, as the People team. There is also free access to free support services, which I’ve outlined at the end of this email.”
It comes after Ms Viner sought to reassure readers over the election outcome, writing in an editorial on Wednesday that the paper would “stand up to four more years of Donald Trump” and that the election was an “extraordinary, devastating moment in the history of the United States”.
Read the full story…
The FTSE 100 is flat today, despite growth around global stock indexes, amid worries of a “cloudy outlook” for the economy.
Chris Beauchamp, chief market analyst at online trading platform IG, said:
Stock markets in the US have made some small gains this afternoon as the positive reaction to Trump’s victory persisted into a second day.
Meanwhile it was turnaround Thursday for the [German] Dax, which shrugged off yesterday’s tariff-related panic and the political developments in Germany to enjoy a healthy surge.
The long-suffering FTSE 100 enjoyed no such bounce, weighed down by the surge in sterling and a gloomy reaction in a number of consumer-focused stocks.
Investors are fretting that the UK’s cloudy outlook is returning, and that inflation will make a return early next year.
The motor finance crisis may stop individuals from buying vehicles needed to go to work and support their families, a lending giant has warned, underscoring fears of a hit to the economy.
Ian McLaughlin, chief executive of Vanquis Bank, said that the “unexpected” Court of Appeal ruling on commissions paid to car salesmen could mean that some customers are unable or don’t want to take out loans.
The British bank was among lenders which met with the Financial Conduct Authority on Wednesday amid a scramble to avoid a collapse in the car sales market.
It comes weeks after the ruling plunged the car industry into crisis by forcing dealerships to disclose any bonuses, commission or fees they receive from banks for selling car loans.
The shock judgement followed concerns that these broker fees were hidden from many customers and dealers were effectively being rewarded for selling more expensive loans.
Dealerships have since rushed to revise their sales practices meaning that drivers buying new cars today will be asked to sign documents consenting to these fees.
Although designed to avoid paralysis in the lending market, some customers are now refusing to pay commission and are consequently left without financing needed to buy a car. Mr McLaughlin said that this a “cause for concern” especially if it impacts customers’ ability to earn a living.
He said:
A lot of our customers, because of the type of customer base the bank has, tend to deal with cars that aren’t a luxury for them. This is the way they either get to work or in some cases actually do their work, or get their kids to school, or buy groceries.
This isn’t sort of racing Ferraris around a track at the weekend territory for Vanquis customers. This is a fundamental part of the way they live their lives.
I’m concerned about anything that impacts our customers ability to access credit and to access a vehicle that allows them to support their family and support their income.
Shares on Wall Street continued to scale record highs this afternoon, lifting stock markets around the world.
It came as investors processed a second Donald Trump presidency and awaited a Federal Reserve policy decision.
The Fed is expected to cut interest rates this evening.
Steve Englander at Standard Chartered Bank, said:
We think it more likely that the Federal Open Market Committee cuts by [a quarter of a percentage point], signalling that pauses could be appropriate at future meetings if inflation prospects deteriorate.
The S&P 500 rose 0.6pc, the Dow Jones Industrial Average added 0.1pc, and the Nasdaq Composite jumped 1.3pc. All three indices hit new all-time highs for a second consecutive day.
The MSCI index for world stocks climbed 0.9pc, also to a record high.
Europe’s broad Stoxx 600 index gained 0.9pc after Asian shares gained earlier in the day, with even onshore Chinese blue chips rising 3pc as investor optimism over potential stimulus outweighed concerns about worsening trade tensions.
The FTSE 100, however, is roughly flat, while the FTSE 250 gained 0.9pc.
Donald Trump can use tariffs as a negotiating strategy without fuelling inflation, his former Treasury Secretary said this afternoon.
Steven Mnuchin told CNBC:
I think that tariffs do need to be used to get counterparties back to the table, especially China, which is not living up to all of the agreements they made in the Phase One trade agreement.
He was referring to a 2020 trade deal that followed a truce in a tariff war between Washington and Beijing.
The agreement saw China pledge to boost purchases of American products and services by at least $200bn (£154bn) over 2020 and 2021. But the target was not met amid the pandemic.
Mr Mnuchin added Thursday that he would recommend Trump use tariffs in a “strategic way” to ensure there is not widespread inflation.
He noted that in his time in the Trump administration, tariffs were accompanied by exemptions for certain products US businesses needed.
The Bank of England is being too cautious over interest rates, the Institute of Economic Affairs has claimed, as .
Julian Jessop, economics fellow, said:
Rates are still higher than necessary to keep bearing down on inflation, especially when the Bank is continuing to tighten policy by running down its holdings of government bonds…
Inflation is now back close to target and expected to remain there, but the full effects of past increases in interest rates and the deceleration of money growth have yet to feed through…
The additional uncertainty and market volatility triggered by the Budget and Trump’s victory had prompted some to speculate that the [Monetary Policy Committee] might hold off today. Delivering the rate cut that almost all had expected should therefore help to reassure households, businesses, and investors…
The increases in taxes and other business costs in the Budget, compounded by the hit to confidence, should also limit any upsides to growth or inflation.
“The Bank acknowledged the uncertainties here, implying rates could still be cut more quickly. But there is a clear risk that the MPC is too slow to respond.”
Tesla stock continues to rise in the aftermath of Donald Trump’s victory, rising 2.7pc this afternoon. But Kathleen Brooks, research director at XTB, has warned that the company, run by Trump ally Elon Musk, is out of sync with other green stocks.
She said:
Tesla was a standout performer on Wednesday as Elon Musk’s strong ties to Trump boosted the prospects of the company. While it can be useful to have friends in high places, the rise in Tesla is out of synch with declines in other renewable companies on the back of Trump’s win.
Rivian’s stock price has slumped in recent weeks, as the Trump trade has taken hold.
Xcel Energy, one of the largest renewable energy producers in the US has also backed away from recent highs, and Pacific Oil and Gas, which is boosting its renewable production by 75pc, has also fallen back on the back of Trump’s win.
Thus, Tesla’s rally looks like an anomaly. Will it sell off because Trump is negative EVs?
Or will Tesla and other domestic EV makers be able to garner the affection from Trump? If yes, then Rivian’s stock price could be ripe for a recovery.
The pound is rising at its fastest pace in more than four months after the Bank of England raised its outlook for growth in the UK economy.
Sterling rose by 1pc against the dollar to tip back above $1.30 a day after a sharp plunge against the dollar following the election of Donald Trump as the next US president.
It comes after the Bank of England said tax rises and a higher level of public spending are expected to boost economic growth by 0.75 percentage points at its peak in a year’s time, compared to its previous forecasts published in August.
Policymakers cut interest rates from 5pc to 4.75pc, stimulating growth, after inflation fell to 1.7pc in September, which Govenor Andrew Bailey said was ‘good and encouraging’.
At this point, let me thank you for following the live updates so far. Alex Singleton will keep you up to speed from here on what is happening to the markets as we head towards the Federal Reserve’s next interest rate decision this evening.
Rachel Reeves’s record tax-raising Budget will be bad news for homeowners with mortgages, according to the Bank of England.
Threadneedle Street has warned that interest rates are expected to fall more slowly because of Reeves’s inflationary Budget, keeping mortgage repayments higher for longer.
Rising costs for employers and a big rise in government spending means inflation will now take a year longer to fall back to the Bank’s 2pc target than previously forecast, it said. That will force the central bank to keep interest rates higher for longer.
Our deputy economics editor Tim Wallace and senior economics reporter Eir Nolsøe analyse why higher taxes, billions in spending, and handouts to workers risk pushing prices back up.
The cost of government borrowing has fallen after the Governor of the Bank of England signalled that market turmoil following the Budget was over.
The yield on 10-year UK gilts – a guide to government borrowing costs – fell six basis points to 4.5pc after Andrew Bailey said a sell-off in bonds had been exacerbated by investors exiting a particular trade.
Mr Bailey said traders had been expecting shorter-term bond rates to fall and had quickly left those positions, a move which the Governor said was “probably finished now”.
UK bonds tumbled last week, with the yield on two-year UK gilts rising by more than 25 basis points, after Chancellor Rachel Reeves announced plans to ramp up spending by about £70bn in the coming five years.
Two-year gilt yields were down more than six basis points today to 4.44pc.
Wall Street’s main stock indexes hit record highs in the run-up to an interest-rate decision from the Federal Reserve.
The S&P 500 rose 18.2 points, or 0.3pc, at the open to 5,947.21 as it extended a sharp rally sparked by Donald Trump’s stunning comeback as US president.
The Nasdaq Composite rose 101.0 points, or 0.5pc to 19,084.43 at the opening bell.
However, the Dow Jones Industrial Average fell 11.0 points, or less than 0.1pc, to 43,718.92. 
Andrew Bailey is cutting interest rates in the face of “pretty gloomy” data after Rachel Reeves talked down the economy, according to some Telegraph readers.
Here are a selection of some of the viewpoints in our comments section below and you can join the debate here:
In corporate news, one of the North Sea’s largest energy companies has been plunged into crisis after a shock accounting investigation by audit giant Deloitte triggered a 50pc fall in its share price.
Aberdeen-based Wood Group, which employs 35,000 people across 60 countries, saw a record fall in shares after a string of write-offs on several large contracts prompted it to launch an urgent review of other contracts on its books.
It warned that the review, led by its auditors Deloitte, would assess whether “any prior year restatement may be required” for other large contracts – prompting fears from investors that Wood may have to book further write-offs.
Read why it saw the most brutal stock market sell-off in its history.
The pound has risen further after the Governor of the Bank of England pointed to a “good and encouraging” direction on falling inflation.
Sterling was up 0.6pc against the dollar to $1.296 and was up 0.1pc versus the euro, which is worth 83.2p.
The Bank of England upgraded its forecast for UK growth next year following the Budget and Governor Andrew Bailey acknowledged inflation had come down quicker than it had predicted.
He said: “The disinflation process not only continues but actually has been faster than we expected, and that’s good and encouraging.”
Meanwhile, UK gilt yields are also down as interest rates were reduced by a quarter of a percentage point to 4.75pc.
The yield on 10-year UK bonds – a measure of UK borrowing costs – was lower by about two basis points to 4.54pc.
Chancellor Rachel Reeves said with interest rates “on a downward path” the Labour Government is “a world away from the last Parliament”.
Speaking on a visit to Manchester Victoria railway station, she said: “Interest rates are now on a downward path, evidenced by the cut in the interest rates today by the Bank of England.”
She added: “Both the Office of Budget Responsibility (OBR) and indeed the Bank of England forecast today shows that the economy is growing, interest rates and inflation are coming down.
“But that is a world away from the last Parliament, which was the worst Parliament on record for living standards – inflation reaching more than 11pc, interest rates spiking after the mini-budget, and growth stagnant too.”
The Governor of the Bank of England has warned of the risks of “fragmentation” in the world economy as policymakers brace for Donald Trump to launch tariffs on foreign goods entering the US.
Andrew Bailey said policymakers would “have to watch very carefully the fragmentation of the world economy” as the Republican prepares to return to the White House.
Mr Trump pledged to impose tariffs of 60pc on Chinese goods entering the US and said he would also target goods entering from other countries.
Mr Bailey said: “It is important so we have to consider those consequences for us both in our monetary policy and our financial stability context and objectives.
“Frankly, there are a lot of risks attached to the fragmentation of the world economy. Let’s see what happens. It’s too early to judge.”
Our economics editor Szu Ping Chan asked the Governor how exposed the UK economy is to a global trade war, following the election of Donald Trump as US president.
Andrew Bailey said the UK “is an open economy” and policymakers “will have to watch this very closely” when the Republican returns to the White House.
He said: “I’m not going to make any presumptions about what will happen because I don’t think that’s either a) consistent with our policy remit or b) wise to be frank. Let’s see what happens.
“There will, I’m sure, be a very open dialogue between both our government and the US administration.
“We work very closely with US administrations because it’s obviously the right thing to do.
“We will no doubt over time be able to get a better sense of a) what the polices are and b) how they will affect the UK economy.
“I don’t think it’s useful or wise to enter into speculation at the moment into what they might be because we just don’t know.”
Andrew Bailey acknowledged there is “greater global uncertainty without doubt” but said policymakers would continue to work “constructively” with the new Donald Trump administration.
He said “there is greater uncertainty out there” but said the Bank of England would “work with all US administrations”.
He said: “We look forward to working with the new US administration. We worked with the previous Trump administration and that’s our job and we will do that constructively.”
Turning to the UK, he added that “we need to see how the Budget measures pass through in terms of their economic effects”.
Andrew Bailey said a gradual approach to cutting interest rates would allow the Bank of England to observe the impact of the Budget, with raised taxes by £40bn.
However, he said it would not be sensible to conclude that the path for interest rates will be different following the Chancellor’s announcements last week.
Traders are betting that the Bank of England will cut interest rates at a slower pace than expected after policymakers warned of inflationary pressures from the Budget.
Money markets indicate that the next cut in interest rates will not come until March, having been priced in to happen by the February meeting before today’s decision.
The chances of an immediate follow-up rate cut in December has reduced from 32pc to 22pc.
Only two rate cuts are priced in for next year.
Shadow chancellor Mel Stride said: “This will be welcomed by millions of homeowners and builds on the work the Conservatives did in office to hold inflation down.
“However, the independent OBR and the Bank of England set out that as a result of Labour’s choices in the Budget last week inflation will be higher.
“The Government must not undo the hard work the last government did.”
The Governor of the Bank of England has begun his press conference following the cut to interest rates.
He said the consequences of the Budget on inflation will “evolve over time”.
The Bank of England has implied that the Budget means rates “will continue to fall only gradually”, according to economists, despite today’s decision to cut borrowing costs.
The consultancy Capital Economics changed its outlook for interest rates, saying it no longer thinks rates will be cut quicker in the second half of 2025, falling only as far as 3.5pc in early 2026 rather than to 3pc. 
Its chief UK economist Paul Dales said: “Crucially, the statement repeated the line that ‘a gradual approach’ to rate cuts ‘remains appropriate’. 
“That suggests the Bank plans to continue cutting rates by 25bps every quarter rather than speeding up like the ECB or keeping pace with the Fed.”
Yael Selfin, chief economist at KPMG UK, said he expects interest rates to settle at about 4pc by the end of next year.
He said: “The remarks accompanying the decision struck a balanced tone, stressing the need to maintain price stability and respond to economic shocks. 
Thomas Pugh, economist at RSM UK, added: “We currently expect the Monetary Policy Committee (MPC) to cut once a quarter next year, but Trumps US election victory raises the prospects of higher inflation globally, which means the risks are skewed towards fewer rate cuts.”
Rachel Reeves said her Budget would help make sure “working people don’t face higher taxes in their payslips” after the Bank of England cut interest rates.
Policymakers warned that the Chancellor’s £25bn National Insurance raid risks pushing up prices. 
Ms Reeves said: “Today’s interest rate cut will be welcome news for millions of families, but I am under no illusion about the scale of the challenge facing households after the previous Government’s mini-budget.  
“This Government’s first Budget has set out how we are taking the long-term decisions to fix the foundations to deliver change by investing in the NHS and rebuilding Britain, while ensuring working people don’t face higher taxes in their payslips.” 
The Bank of England has said the Budget will boost economic growth by 0.75 percentage points in a year’s time compared with previous forecasts.
The pound rose 0.4pc today to $1.293 after policymakers cut rates and upgraded its growth forecast to 1.5pc from 1pc next year.
The Bank of England has cut interest rates but signalled that Rachel Reeves’s budget spending binge will keep borrowing costs higher for longer.
Policymakers voted 8-1 to reduce rates to 4.75pc, from 5pc, but warned that inflation was now set to fall more slowly to the Bank of England’s 2pc target in future as higher government spending keeps prices rising across the economy.
While the reduction is good news for borrowers, Andrew Bailey, the Bank’s Governor, warned policymakers could not cut rates “too quickly or by too much” amid risks that inflation could remain stubbornly high.
Commenting on the decision, Mr Bailey said: “Inflation is just below our 2pc target and we have been able to cut interest rates again today. We need to make sure inflation stays close to target, so we can’t cut interest rates too quickly or by too much. But if the economy evolves as we expect it’s likely that interest rates will continue to fall gradually from here.”
Andrew Bailey, Governor of the Bank of England, said policymakers cannot cut borrowing costs “too quickly or by too much” as they voted by a majority of 8-1 to reduce the Bank Rate to 4.75pc.
Mr Bailey said: “Inflation is just below our 2pc target and we have been able to cut interest rates again today. 
“We need to make sure inflation stays close to target, so we can’t cut interest rates too quickly or by too much. 
“But if the economy evolves as we expect it’s likely that interest rates will continue to fall gradually from here.”
The Bank of England has reduced interest rates from 5pc to 4.75pc, as widely expected by the markets.
It is the second time this year that policymakers have reduced borrowing costs, after inflation fell to 1.7pc in September.
A quick look at the markets before the interest rate announcement shows the pound is up 0.2pc against the dollar to $1.29.
Sterling fell 1.3pc against the US currency on Wednesday following the election of Donald Trump. The pound was down 0.1pc against the euro, which is worth 83,4p.
The Republican candidate’s victory sent government borrowing costs surging in anticipation of more inflationary policies, which could force central banks to keep interest rates higher.
The yield on 10-year UK gilts – the return the government promises to buyers of its debt – has eased today to 4.54pc following three days of gains in the run up to the US election.
Shares in the largest British North Sea oil and gas producer have fallen despite it raising its production forecast for the year.
Harbour Energy lifted its expectations to reflect the contribution from its purchase of oil and gas company Wintershall Dea’s assets.
It expects annual production of 255,000 to 265,000 barrels of oil equivalent per day (kboepd), up from 250,000 to 265,000, including about four months worth of production from Wintershall Dea’s upstream assets.
Harbour agreed to acquire the German company’s non-Russian oil and gas assets in an $11.2bn (£8.7bn) deal last year with co-owners BASF and LetterOne, aiming to create one of the world’s biggest independent producers.
After the deal completed in September, Harbour Energy had raised its forecast to 250-265 kboepd from the prior forecast of 155-165 kboepd.
Jittery lenders have raised mortgage rates despite an expected cut to the Bank of England’s interest rate today.
Virgin Money and Halifax increased their fixed-rate deals by as much as 0.25pc, sparked in part by an increase to the cost of borrowing following Chancellor Rachel Reeves’s Budget last week.
It came as experts warned a Donald Trump win could also leave UK homeowners with higher for longer mortgages.
Our senior money writer Fran Ivens reveals why.
The Barclay family funnelled millions of pounds offshore from Very Group as their business empire faced an escalating debt crisis, the online retailer has disclosed.
Very’s annual report reveals a previously unaccounted-for £2.8m payment in 2023 to a Guernsey-registered company called Societe Le Marchant, of which brothers Aidan and Howard Barclay are directors.
The movement of cash, acknowledged in restated accounts as the “purchase of services”, was followed by a further £1m this year. Very has not provided further explanation for the payments.
Read how the payments were made amid massive financial pressure on the Barclay family.
US stock indexes are on track to continue their record rally following the election of Donald Trump as the Federal Reserve is expected to announce a cut in interest rates.
Traders have about fully priced in a quarter of a percentage point rate cut, which would bring the Fed’s key policy down to a range of 4.5pc to 4.75pc.
Wall Street surged to record highs on Wednesday amid expectations that Mr Trump will lower corporate taxes and loosen regulations.
The Dow Jones Industrial Average, S&P 500 and small-cap Russell 2000 notched their biggest one-day rise since November 2022, while the Nasdaq hit its best day since February.
However, traders are betting the Fed will cut its policy rate only twice in 2025 against the backdrop of consistently robust economic data and chances of higher inflation due to Mr Trump’s proposed tariffs and government spending.
In premarket trading, the Dow Jones Industrial Average, S&P 500 and Nasdaq 100 were all up about 0.2pc.
S4 Capital, the marketing agency founded by Sir Martin Sorrell, plunged to a record low after it said revenues and profits would be lower than expected.
The London-listed company’s shares sank by as much as 17.3pc to 32.6p as it said its technology clients had been hit by “ challenging global macroeconomic conditions and high interest rates”.
It forecast that like-for-like net revenue would be in “low double digits”, with like-for-like underlying profits slightly below last year.
Set up by Sir Martin after he left advertising giant WPP, S4 Capital’s shares have plunged 96pc since hitting its record high in 2021.
The Bank of England is expected to cut interest rates for the second time this year today despite Donald Trump’s victory in the US election and the tax-raising Budget.
Policymakers are expected to reduce the Bank Rate from 5pc to 4.75pc, having cut borrowing costs for the first time in four years in August before leaving them unchanged in September.
The cut comes as inflation fell to 1.7pc in September, which was the lowest level since April 2021.
However, Donald Trump’s election as the next US president raises the prospect of tariffs impacting UK-US trade after the Republican pledged to ramp up levies on imports.
Deutsche Bank analyst Jim Reid said “higher tariffs mean that inflationary pressures will rise”.
Inflation was already expected to increase in the coming months after Chancellor Rachel Reeves announced almost £70bn of extra annual spending, funded by tax rises and additional borrowing.
The Office for Budget Responsibility said inflation is forecast to average 2.5pc this year and 2.6pc next year before coming down, assuming “the Bank of England responds” to help bring it to the target rate.
James Smith, developed market economist for ING, said: “The Budget won’t change the Bank’s decision to cut rates again this week.
“But it does question our long-held view that rate cuts will speed up from now on.”
ITV is to cut another £20m in costs after taking a revenue hit from last year’s Hollywood writers’ and actor’s strikes.
Revenues at ITV Studios, which made recent hits including Rivals for Disney+ and Ludwig for the BBC, slumped by a fifth in the third quarter after the walkouts led to a production shutdown.
Advertising revenue was flat over the quarter as growth in streaming offset the decline in ITV’s traditional broadcast business. Overall, revenues fell 8pc to £2.7bn.
ITV said it was targeting an additional £20m in cost savings this year, split between lower spending on programmes and the early delivery of cost-cutting measures due next year. The Love Island broadcaster is already targeting savings of £50m per year.
ITV said it expects advertising revenues to be down as much as 7pc in the final quarter compared to last year’s Rugby World Cup. It also warned that uncertainty in the run-up to the Budget had hit ad bookings.
Full-year ad revenue is forecast to rise 2.5pc, while ITV also forecast improved studios performance due to a strong line-up of shows including the BBC’s Shetland and The Better Sister for Amazon Prime.
Dame Carolyn McCall, ITV chief executive, said: “Our cost saving programme is progressing well and today we are announcing further cost savings in addition to the previously announced £40m of incremental cost savings through restructuring, improved efficiency and simplifying ways of working. 
“Coupled with our strategic delivery and revenue outlook, this continues to give us the confidence that we will deliver an increase in group profit this year.”
Norway’s central bank held its policy interest rate unchanged at a 16-year high of 4.5pc and reiterated that it will stay on hold until the end of the year.
Norges Bank said the outlook for the Norwegian economy did not appear to have changed materially since September, when it forecast that rates would start to decline in the first quarter of 2025.
“The committee judges that a restrictive monetary policy is still needed to bring inflation down to target within a reasonable time horizon,” the central bank said.
Norges Bank Governor Ida Wolden Bache said: “The policy rate will most likely be kept at 4.5pc to the end of 2024.
“The committee will have received more information about developments ahead of its next monetary policy meeting in December, when new forecasts will be presented.”
Rolls-Royce shares dipped from the record high hit on Wednesday as it said supply chain conditions remain “challenging” and “flying hours” were weaker than hoped.
The engineering giant’s shares fell 4.6pc after it said flying hours – a measure of how much airlines use its engines – in its civil aerospace business grew by 18pc for the 10 months to October compared with the same period a year earlier, which was below analyst expectations.
It said the aerospace industry supply chain has remained “challenged” but that interventions with a number of suppliers have helped to drive improvements.
Rolls-Royce said it was still on track to meet its financial forecasts, expecting operating profits of between £2.1bn and £2.3bn for this year.
In defence, demand was also “strong with significant progress across key platforms”, the company said.
Rolls-Royce chief executive Tufan Erginbilgic said: “Our transformation of Rolls-Royce into a high-performing, competitive, resilient and growing business continues with pace and intensity.
“Continued good performance year to date gives us further confidence in the delivery of our 2024 guidance despite a supply chain environment which remains challenging.
“We are also making good progress towards our mid-term targets, with a front-end loaded delivery of profit and cash flow improvements.”
UK bond markets rose after three days of losses in the lead up to the US presidential election.
The yield on 10-year UK gilts – which moves inversely to its price – was about nearly two basis points to 4.54pc.
Yields on the 10-year bond – the return the government promises to pay buyers of its debt – have risen from 4.21pc since Chancellor Rachel Reeves delivered her tax-raising Budget.
Donald Trump’s victory in the US election sent US Treasury yields surging amid expectations he will bring in inflaitonary policies.
The yield on the 30-year US Treasury was little changed after a 17-basis point surge on Wednesday, which was the biggest in four years.
National Grid has announced a 14pc increase in operating profits over the first half of the year as it was boosted by extra revenues from its UK transmission and distribution networks.
Shares rose 1.1pc as the company, which runs the high voltage electricity transmission across the southern UK, posted an underlying operating profit of £2.1bn for the six months to September 30, compared with £1.8bn last year.
The company’s most profitable operations were all from owning and running the national grid in the UK – charges for which are added to customer bills – rather than its electricity and gas business in New York and Massachusetts.
Its UK high voltage transmission system made £724m profit, a 10pc increase. 
Second most profitable was its UK electricity distribution network, the lower voltage wires that deliver electricity to customers, where profits rose from £563m to £573m. 
Another £115m came from the Electricity System Operator – which runs the UK’s national grid day-to-day, balancing generation with demand. It was recently sold to the Government.
Chief executive John Pettigrew said: “Over the last six months, the exciting momentum within National Grid has continued as we deliver an unprecedented step up in capital investment.”
Cabinet Office minister Pat McFadden said President-elect Donald Trump said “a lot of fiery things” in his election campaign as he urged the public to “wait to see what he actually does” on potential tariffs.
The President-elect said during the campaign that he would put in place tariffs on Chinese goods of 60pc, as well as levies on other foreign imports to the US on taking office.
Asked about the impact a more isolationist US would have on the UK economy, Mr Mc Fadden told Sky News: “I think you’ve got to understand that in an election, a lot of fiery things are said, and President-elect Trump says a lot of fiery things, and the important thing is what he actually does.
“We obviously have interests as a trading nation. We want to protect and look after our interests, and we always want to have a dialogue with the US administration about those.
“But for anyone speculating about what exactly will happen, I would advise let’s wait to see what he actually does, rather than take everything said in a campaign.”
The pound rose ahead of a Bank of England’s interest rate decision but trading was mostly dominated by the reverberations of Donald Trump’s win in the US presidential elections.
Policymakers are widely expected to cut rates at this meeting, although what happens after that is less clear after last week’s high-tax, high-spending Budget and Trump’s return to the White House, both of which economists think will be inflationary.
Sterling was last up 0.5pc at $1.294, having posted its biggest one-day fall against the dollar since March 2023 on Wednesday following Trump’s clear win over Democrat rival Kamala Harris.
The pound and gilts came under fire last week after Rachel Reeves delivered her first Budget, which contained £40bn in tax rises, as well as an increase in spending of around £70bn in the coming five years.
The Office for Budget Responsibility believes growth but also inflation will rise more quickly over the coming few years.
Consumer prices look to rise by 2.6pc in 2025, according to the OBR’s forecasts, considerably above the Bank of England’s 2pc target, largely because of the Budget. As a result, the Bank of England could be forced to keep interest rate higher.
Jefferies chief European economist Mohit Kumar said: “In our view, the OBR projections are way too optimistic. It’s the monetary policy report month, and it would be interesting to see if the Bank of England projections differ from the OBR.”
The pound was little changed against the euro, which is worth 83.3p.
The FTSE 100 rose at the open ahead of interest rate decisions by the Bank of England and the US Federal Reserve today.
The UK’s blue-chip stock index climbed 0.2pc to 8,178.83 as investors also digest the implications of Donald Trump’s impending return to the White House.
The midcap FTSE 250 was up 0.3pc to 20,498.78.
Nissan will cut 9,000 jobs around the world as it scales back its car making as part of plans to save 400bn yen (£2bn) amid plunging profits.
The Japanese car maker, which has a major plant in Sunderland, said it would axe roles as it reduces its global production capacity by 20pc.
Chief executive Makoto Uchida said he would take a 50pc pay cut starting this month as it implements various cost saving measures.
It comes as the company lowered its annual profit outlook from 500bn yen to 150bn yen, which is less than half what analysts expected.
Telecoms giant BT has cut its annual sales outlook and revealed another 2,000 jobs have gone under its ongoing plan to slash costs.
The group reported a 10pc drop in pre-tax profits to £967m for the six months to September 30 as revenues fell 3pc to £10.1bn.
It now expects annual revenues to fall by 1pc to 2pc, “reflecting weaker non-UK trading including reduced low-margin kit sales”, while it also blamed softer trading in the corporate and public sector, though it kept its earnings guidance unchanged.
BT had previously guided for revenues to rise by up to 1pc in 2024-25.
The company also laid bare the pace of its previously-announced jobs cull to slim down to between 75,000 and 90,000 workers by 2030 as it looks to shave billions off its cost base.
It said it slashed its workforce by 2,000, or 4pc year-on-year, to 118,000 and saved £433m in annual costs in the first half alone.
In some corporate news, Sainsbury’s has said it is expecting a “strong” trading performance over the festive period after revealing an acceleration in sales.
The UK’s second-largest supermarket said group revenues increased by 2.3pc to £17.2bn for the 28 weeks to September 14, compared with the same period a year earlier.
This came as like-for-like sales, excluding fuel, grew by 3.4pc for the period, driven by a 4.2pc jump in the most recent quarter.
Sainsbury’s said this was partly boosted by a stronger performance in its Argos business.
Chief executive Simon Roberts said: “Our food business is going from strength to strength and we’re making the biggest market share gains in the industry, with continued strong volume growth.
“More and more customers are coming to us for their big food shop, recognising our winning combination of value, quality and service.
“As we head into the festive season, there is real energy and excitement at Sainsbury’s and Argos and we’re expecting another strong performance.”
House prices in Britain hit a record high last month as mortgages became more affordable amid expectations the Bank of England will cut interest rates.
The average home was worth £293,999 in October, surpassing the previous peak of £293,507 set in June 2022, according to the Halifax house price index.
It came despite prices rising at a slower pace, up 3.9pc compared to the previous October, having growth 4.6pc in the year to September.
Amanda Bryden, head of mortgages at Halifax, said: “That house prices have reached these heights again in the current economic climate may come as a surprise to many, but perhaps more noteworthy is that they didn’t fall very far in the first place.
“Despite the headwind of higher interest rates, house prices have mostly levelled off over the past two and a half years, recording a 0.2pc increase overall.
“That’s a significant slowdown compared to the 21pc rise we saw in the equivalent period from January 2020 to the summer of 2022.
“Despite the affordability challenge, market activity has been improving. The number of new mortgages agreed recently reached its highest level in two years.
“This aligns with average mortgage rates dropping steadily since spring – now over 160 basis points lower than in summer 2023 – coupled with continued positive income growth.”
Against the cost of living and rate odds; UK Avg house prices increase 0.2% in October to £293,999 beating the previous peak set in June 2022 of £293,507. The increase in growth was again led by Northern Ireland and Scotland, the South trailing behind @HalifaxBank pic.twitter.com/eLLZtalkA6
Chinese companies scrambled to export goods last month amid the looming threat of tariffs from a Donald Trump presidency.
China’s exports grew at the fastest pace in over two years in October as factories rushed to sell stock to major markets in anticipation of further tariffs from the US and the European Union.
Donald Trump’s sweeping victory in the US presidential election has brought into focus his campaign pledge to impose tariffs on Chinese imports in excess of 60pc.
Outbound shipments grew 12.7pc last month compared to last year, customs data showed, blowing past a forecast 5.2pc and September’s rise of 2.4pc.
China’s exports to the US increased at an annual pace of 8.1pc, while outbound shipments to Europe jumped 12.7pc over the same period.
Xu Tianchen, senior economist at the Economist Intelligence Unit, said: “We can anticipate a lot of front-loading going into the fourth quarter, before the pressure kicks in come 2025.
“I think it is mainly down to Trump. The threat is becoming more real.”
The president-elect’’s tariff threat is rattling Chinese factory owners and officials, with some $500bn (£387bn) worth of annual shipments on the line.
It comes amid intensifying trade tensions with the EU, which last year took $466bn (£360bn) worth of Chinese goods, after officials in Brussels imposed tariffs of up to 37pc on electric vehicles from the world’s second-largest economy.
Zichun Huang, China economist at Capital Economics, said: “We expect shipments to stay strong in the coming months.
“Any potential drag from Trump tariffs may not materialise until the second half of next year.
“Trump’s return could create a short-term boost to Chinese exports as US importers increase their purchases to get ahead of the tariffs.”
Meanwhile, China’s imports fell 2.3pc, compared with expectations for a drop of 1.5pc, turning negative for the first time in four months.
Exports YoY in China increased to 12.70 percent in October from 2.40 percent in September of 2024.https://t.co/BXyY3qDPuZ pic.twitter.com/9MXxXHYe1G
Thanks for joining me. Donald Trump’s election is expected to drive up Chinese exports, economists have said, as companies in the world’s second largest economy race to sell stock ahead of tariffs under the incoming US president.
China’s exports surged at their fastest pace in two years in October, customs data show, amid looming trade tensions with both the US and Europe.
Shares recovered from early losses in Asia after US stocks stormed to records as investors wagered on what Donald Trump’s return to the White House will mean for the economy and the world.
Markets also were turning their attention to the Federal Reserve and Bank of England’s decisions on interest rates later today.
Japan’s Nikkei 225 fell 0.3pc to 39,381.41, reflecting worries over the potential for a revival of trade tensions under a Trump administration.
Neil Newman, head of strategy for Astris Advisory Japan, said: “I think everybody’s going to be worried about Trump’s tariffs because that’s one of the things in his playbook. And so we’ll have to see how things develop in the early stages of his presidency this time.” 
In Seoul, the Kospi finished nearly flat, at 2,564.63. Australia’s S&P/ASX 200 rose 0.3pc to 8,226.30.
Chinese shares rallied after the government reported that exports jumped nearly 13pc in October over a year earlier, the fastest pace in more than two years and far outpacing the 2.4pc increase in September.
Hong Kong’s Hang Seng gained 1.6pc to 20,863.30. The Shanghai Composite index was up 2.3pc at 3,460.52.
Wall Street tore to record highs on Wednesday. The S&P 500 jumped 2.5pc, closing at 5,929.04, the Dow Jones Industrial Average surged 3.6pc, reaching 43,729.93, and the Nasdaq Composite leapt 3pc to 18,983.47.
In the bond market, the yield on 10-year US Treasury notes rose to 4.435pc from 4.411pc late on Tuesday.