After months of mounting pressure from President Donald Trump, the Federal Reserve on Wednesday cut its benchmark interest rate by 25 basis points to 4.00%-4.25%, delivering a widely expected move that ends a nine-month policy pause.
This marks the fourth cut in the current easing cycle – following moves in September, November and December 2024 – with policymakers signaling that further easing may follow.
“Job gains have slowed, and the unemployment rate has edged up but remains low,” the Federal Open Market Committee said in its September statement, marking a notable downgrade from July’s statement, which called labor conditions “solid.”
The August nonfarm payrolls report showed a mere 22,000 jobs created, a steep drop from 79,000 in July. Over the last three months, the average monthly job gain has fallen to just 29,000 – a pace effectively indicating stagnation in employment trends.
The decision to cut interest rates by 25 basis points was not unanimous, as Stephen I. Miran — President Donald Trump’s appointee replacing Adriana Kugler, who resigned in …