Explainer: Federal Reserve's Expected Interest Rate Cut
The Federal Reserve aims to cut rates by 0.25% to support economic growth amid a labor market slowdown and inflation rising to 2.9%, surpassing the 2% target.
- A 0.25% reduction in interest rates is anticipated to be announced on Wednesday at the conclusion of the Federal Reserve’s two-day meeting focused on bolstering economic stability.
- This move results from rising inflation at 2.9% as of August, above the Fed’s 2% target, coupled with a weakening labor market showing meager job gains and June job losses.
- President Trump has exerted strong pressure on the Fed to cut rates while the Fed remains cautious due to inflation concerns partially linked to tariffs and economic uncertainties.
- In a social media post, Trump emphasized that interest rates need to be reduced urgently and by a larger amount than previously considered, while strategist Art Hogan noted that the president's policies are influencing the Fed's decisions.
- The expected rate cut signals a likely series of reductions to support the labor market, but experts warn this may risk reigniting inflation and further strain Fed credibility and independence.
33 Articles
33 Articles

Explainer: Federal Reserve's expected interest rate cut
Economists expect the Federal Reserve to announce a 0.25% interest rate cut this week, addressing inflation and a slowing job market. Here's how it affects you.
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