The Federal Reserve cut interest rates by a quarter point on Thursday, setting the final course on borrowing costs just two days after President-elect Donald Trump’s victory.

The move comes two months after the Fed cut its benchmark interest rate by half a percentage point, rolling back its years-long fight against inflation and bringing relief to borrowers struggling with high costs.

The Federal Open Market Committee (FOMC), the Fed’s policy-making body, predicts further interest rate cuts.

According to FOMC forecasts, interest rates will fall another half point from the current level of 4.75% to 5% by the end of 2024. Forecasts also indicate that interest rates will drop another point through 2025.

In recent months, the United States has inched closer to a “soft landing,” in which inflation normalizes and the economy avoids recession.

Government data released last week showed that the decline in inflation continued alongside strong economic growth in the last three months.

Hiring in the United States slowed in October, but the effects of hurricanes and labor strikes likely led to an undercount of the country’s workers, according to Friday data from the U.S. Bureau of Labor Statistics.

The Fed has been trying to rein in inflation with high interest rates since 2021. Even after the Federal Reserve cut its benchmark rate in September, it still remains at a historically high level.

Inflation has fallen significantly from a peak of 9 percent in 2022 and remains just around the Federal Reserve’s 2 percent target.

The course of inflation may change in the coming months. Trump’s proposals for increased tariffs and mass deportations of undocumented immigrants are widely expected to raise consumer prices, experts previously told ABC News.

Of course, the Fed says it makes its decisions based on economic conditions and operates as an independent government body.

“We’re not thinking about politics,” Powell previously said when asked about the 2024 elections at a news conference in Washington, D.C., in December.

Trump’s election seems to have given momentum to the stock market. US stocks rose at the open on Wednesday, just hours after Trump declared victory.

The Dow Jones Industrial Average rose more than 1,300 points, accounting for a nearly 3% gain in the index. S.The &P 500 and tech-heavy Nasdaq rose more than 2%.

Shares of Tesla, the electric vehicle company led by Trump ally Elon Musk, rose nearly 14.5% in early trading Wednesday.