The Federal Reserve cut interest rates by 0.25%, which brings the benchmark rate to 4.00%-4.25%.
The US Federal Reserve has reduced interest rates on Wednesday, 17 September 202, for the first time since December in response to concerns about rising unemployment.
The Federal Reserve cut interest rates by 0.25%, which brings the benchmark rate to 4.00%-4.25%, signalling a shift in focus toward stabilising a labour market showing signs of strain, including higher joblessness among Black workers, shorter workweeks, and sluggish hiring.
Fed Chair Jerome Powell emphasised that the current pace of job creation is insufficient to maintain steady unemployment levels, warning that layoffs could quickly exacerbate the situation.
“There are no risk-free paths. It’s not incredibly obvious what to do. We have to keep our eye on inflation at the same time; we cannot ignore maximum employment,” Powell said.
This decision aligns partially with President Donald Trump’s calls for lower borrowing costs, though it falls short of the aggressive cuts he has demanded.
