Federal Reserve Cuts Interest Rates

The United States — Federal Reserve cut interest rates by a quarter of a percentage point to a range of 4.00% to 4.25% on Wednesday, September 17, and indicated it would steadily lower borrowing costs for the rest of the year. This decision was primarily driven by concerns over a weakening job market and the likelihood of rising unemployment in the United States. Most of Donald Trump's central bank appointees supported the move, with new Governor Stephen Miran dissenting in favor of a larger half-percentage-point cut. United States — Federal Reserve Chair Jerome Powell emphasized the risks to the labor market as the focus of the decision, noting that job creation is running below the break-even rate. The United States — Federal Reserve's new economic projections show inflation ending the year at 3%, still above the 2% target, while unemployment remains at 4.5% and economic growth is slightly higher at 1.6%. The United States — Federal Reserve officials are now downplaying the risk of Donald Trump's trade policies stoking persistent inflation, believing they can address unemployment with faster rate reductions while inflation eases slowly. The move to a more consistent pace of cuts was backed by United States — Federal Reserve Governors Christopher Waller and Michelle Bowman. Lisa Cook also voted in favor despite Donald Trump's previous attempts to fire her.