US EditionFederal Reserve cuts key rate by quarter-point and signals two more cuts this year
- On Wednesday, the Federal Reserve, under Chair Jerome Powell, lowered the federal funds target range by 0.25 percentage points, marking the first interest rate cut in 2025.
- The rate cut followed rising inflation, slowing job growth, and pressure from investors and political figures including President Trump for the Fed to ease policy.
- Powell noted the Fed had kept rates steady for five meetings due to economic uncertainty, and its dual mandate to balance employment with price stability remains challenging.
- The federal funds rate currently stands between 4% and 4.25%, with Powell emphasizing that FOMC members will determine future actions by carefully evaluating the data and considering its impact on the economic outlook.
- This rate cut signals potential further easing, but economists warn multiple cuts may be necessary before consumers see significant changes in borrowing costs or savings.
450 Articles
450 Articles
Fed cuts interest rates amid economic uncertainty
The Federal Reserve cut its benchmark interest rate for the first time this year, dropping it by a quarter point. The change could have an impact on many lending rates and the Fed suggested two more cuts by year's end. To discuss the cut and what's ahead, Geoff Bennett spoke with Ron Insana, a contributor to CNBC and publisher of the Substack column, The Message of the Markets.
US Federal Reserve cuts interest rates for first time this year
The US Federal Reserve has cut its key interest rate by 0.25 points and projected it would do so twice more this year as concern grows at the central bank about the health of the nation's labour market.The move is the Fed's first cut since December and it lowered its short-term rate to about 4.1 per cent, down from 4.3 per cent. Fed officials, led by chair Jerome Powell, had kept their rate unchanged this year as they evaluated the impact of tar…
Federal Reserve Announces First Rate Cut of Trump's Second Term - The Virginia Star
by Ben Whedon The Federal Reserve on Wednesday announced a 0.25% interest rate cut, marking the first such move since President Donald Trump returned to the White House. Chairman Jerome Powell had been hesitant to make such a move, despite public urging from Trump. The move lowered the Fed rate from 4.25% to 4.00%, USA Today reported. The Fed has not cut rates since late 2024. While the move is a win for Trump, he is unlikely to be satisfied w…
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