The Federal Reserve has implemented a 25-basis-point rate cut, a decision that comes as President-elect Donald Trump calls for Fed Chair Jerome Powell to step down when the new administration takes office in 2025.

Serpa Pinto Advisory founder Jon Hilsenrath joins Asking for A Trend to analyze this developing situation and its implications for monetary policy.

The recent rate cut "opened the door to slowing the pace of rate cuts," Hilsenrath says. He anticipates another rate reduction in December but expects the current cutting cycle to conclude by mid-2025.

"My own view is that it's going to feel like this rate-cutting cycle was over before it even started," he tells Yahoo Finance.

Regarding Trump's demand for Powell's resignation, Hilsenrath points out that Powell has firmly committed to completing his term, which extends through 2026.

"What we've seen in Donald Trump is he tends to take interest rate policy and Fed decisions somewhat personally," Hilsenrath notes, drawing parallels to Trump's previous presidential term in 2017.

Looking beyond the political dynamics, Hilsenrath emphasizes that the Fed's primary focus remains achieving its inflation target. As this goal comes within reach, he expects the central bank to moderate its rate-cutting pace toward "what they would call a soft landing on rates," adding that "we'll have to see how patient the president is with it."

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This post was written by Angel Smith