Fed Cuts Interest Rates for 2nd Time This Year Amid Hiring Slowdown
The Federal Reserve cut its benchmark interest rate by a quarter of a percentage point on Wednesday, marking its second interest rate cut this year.
This move aims to jumpstart the labor market, which has slowed down in recent months, while inflation has picked up. The decision was widely expected and delivers a lowering of interest rates sought by President Donald Trump.
However, the size of the cut falls short of the major drawdown called for by the president. The policy marks the first interest rate adjustment since the outset of a weeks-long government shutdown, which threatens to cool economic activity and restricts the release of federal data.
A recent inflation report showed a continued acceleration of price increases, which may complicate the Fed's attempt to revive the labor market.
The size of the cut falls short of the major drawdown called for repeatedly by President Donald Trump.
Author's summary: Fed cuts interest rates to boost labor market.