- The U.S. Federal Reserve lowered its key interest rate by 0.25 points to a 3.75%-4.00% range to support economic growth and the labor market.
- Fed Chair Jerome Powell emphasized that further cuts are not guaranteed due to differing views among policymakers and limited economic data caused by the ongoing government shutdown.
- Two Fed officials dissented in the recent vote—Stephen Miran favored a larger cut, while Jeffrey Schmid opposed any cut—highlighting disagreement on inflation and economic risks.
- Powell suggested inflation pressures have eased somewhat, excluding the effect of tariffs, and remain closer to the 2% target, though temporary spikes are possible.
- The Fed will stop reducing its securities holdings and will begin limited reinvestments to maintain liquidity, keeping the total holdings steady at roughly $6.61 trillion.
US Federal Reserve Cuts Interest Rates by 0.25% Amid Weaker Labor Market
