The Fed announced its first interest rate cut decision of the year

""In the near term, risks to inflation are tilted to the upside, and risks to employment to the downside - a challenging situation. When our goals are in tension like this, our framework calls for us to balance both sides of our dual mandate," Chair Jerome Powell said in Jackson Hole, adding, "With policy in restrictive territory, the baseline outlook and the shifting balance of risks may warrant adjusting our policy stance.""

"Borrowers hope Wednesday's rate change will provide relief as many economic indicators hit a slump. The consumer price index is at its highest rate since January, the US added far fewer jobs than expected this summer, consumer sentiment is dipping, and job vacancies can't keep up with the number of Americans looking for work. Though not all is doom and gloom: GDP is recovering from an early-year plateau and unemployment is still historically low."

The Federal Reserve cut interest rates by a quarter-point amid slowing job growth and rising inflation. CME FedWatch had projected a near-100% chance of a September policy shift before the meeting. The FOMC cited slowing job growth as a key reason for the cut even as inflation heated up. Chair Jerome Powell said near-term inflation risks are tilted upward while employment risks are downward, requiring a balance under the dual mandate. Powell noted prior rate holds were driven by uncertainty about President Trump’s trade plans. Economic signals show higher CPI, weaker job gains, slipping consumer sentiment, recovering GDP, and low unemployment.

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