The Federal Reserve cut its key interest rate by a quarter-point in response to the steady decline in the once-high inflation that had angered Americans and helped drive Donald Trump’s presidential election victory this week.

The Federal Reserve on Thursday is expected to cut interest rates for the second time this year, with the decision coming less than two months after its surprise jumbo cut in September.

It follows data showing inflation is nearing the Federal Reserve's 2% target — the consumer price index, a commonly watched measure of inflation, rose 2.4% over the year in September. This latest interest-rate decision also came two days after Donald ...