The Federal Reserve cut interest rates for the second time, lowering its benchmark rate by 0.25% to a 4.50%-4.75% range. This move, anticipated by markets, aims to balance inflation control with supporting the labor market, as economic indicators show moderate growth and slight softening in employment.
The Fed’s statement reflected a shift towards a more neutral stance, emphasizing “recalibration” as inflation nears its 2% target. Chair Jerome Powell noted that political changes, such as Trump’s recent election win, won’t impact near-term monetary policy. Another rate cut is expected in December before potential pauses as the Fed assesses economic conditions.
