"Lower interest rates could reduce borrowing costs for mortgages, car loans, and business loans, and boost growth and hiring. Downside risks to employment have risen, the Fed said in a statement after its two-day meeting. Fed officials also signaled that they expect to reduce their key rate twice more this year, but just once in 2026, which may disappoint Wall Street."
"Just one Fed policymaker dissented from the decision: Stephen Miran, who President Donald Trump appointed and was confirmed by the Senate in a rushed vote late Monday just hours before the meeting began. Many economists forecast additional dissents, and the outcome suggests that Powell was able to patch together a show of unity from a committee that includes Miran and two other Trump appointees from his first term."
The Federal Reserve reduced its key interest rate by a quarter-point to about 4.1%, the first cut since December. Fed officials signaled two additional cuts this year and one in 2026. The central bank shifted focus from inflation, modestly above its 2% target, to mounting labor-market weakness as hiring slowed and unemployment ticked up. Officials had previously held rates steady while assessing the effects of tariffs, tighter immigration enforcement, and other administration policies. Lower rates aim to reduce borrowing costs for mortgages, auto and business loans, and to support growth and hiring. One policymaker dissented.
Read at www.mercurynews.com
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