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.
181 Articles
181 Articles
Fed Cuts Rates for First Time This Year
The Federal Reserve lowered interest rates by a quarter of a percentage point on Wednesday as officials signaled that two more cuts could follow this year in light of rising risks confronting the labor market. The decision to lower borrowing costs for the first time since December shifts interest rates to a range of 4 percent to 4.25 percent. The decision was not unanimously supported, the second straight meeting that featured at least one disse…
As a result of a weak labour market, the US Federal Reserve lowers the key interest rate. Now the range is 4.0 to 4.25%, according to the Fed in Washington.
For the first time in a three-quarter year, the US Federal Reserve has lowered its key interest rate.
Since December the Fed had not touched the key interest rate. Now the US Federal Reserve lowers it by a quarter of a percentage point. The economic forecast looks more optimistic. But the pressure from the president remains.
The Federal Reserve today cut interest rates for the first time since December last year to support the faltering US labor market.
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