Fed Delivers Third Consecutive Rate Cut Amid Policy Divisions
The Federal Reserve cut its benchmark interest rate by 25 basis points to 3.5%-3.75%, marking the third consecutive reduction and the lowest level since November 2022. The decision exposes deepening fractures within the FOMC, with three dissenting votes highlighting the central bank's struggle to balance sluggish job growth against persistent inflation.
Trade policy uncertainty continues to weigh on business investment, exacerbating the labor market slowdown. While the MOVE aims to stimulate hiring, policymakers signaled potential pause in further cuts as they monitor conflicting economic signals.