The Federal Reserve announced Thursday that it will lower its benchmark rate by a quarter point, or 25 basis points, less than two days after President-elect Donald Trump won the 2024 election.

Economic uncertainty was a prevailing mood heading into Election Day after a prolonged period of high inflation left many Americans struggling to afford the cost of living.

But recent economic data indicates that inflation has been falling back toward the Fed’s 2% target, which paved the way for the central bank to trim rates this fall. Thursday’s cut is the second, following a half-point reduction Sept. 18.

The federal funds rate sets overnight borrowing costs for banks but also influences consumer borrowing costs.