The election outcome, particularly President-elect Donald Trump’s economic policies, raises uncertainty about the Federal Reserve’s future interest rate decisions. The US central bank's Federal Open Market Committee (FOMC) meeting for November is underway, concluding with Fed Chair Jerome Powell's press conference tomorrow, Thursday, November 7.

The New York Times Federal Reserve and economy reporter Jeanna Smialek tells Yahoo Finance that while markets expect a 25-basis-point cut from this month's FOMC meeting, inflation risks tied to Trump’s proposed tariffs and immigration policies can complicate future cuts.

"If the Fed is looking at a world with higher inflation next year, they may not be able to cut interest rates as much," Smialek says to anchors Seana Smith and Madison Mills. While the Fed is closely watching the inflation outlook and the jobs market, further inflation pressures could push officials to adopt a more cautious stance.

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This post was written by Cindy Mizaku.