"Job gains have slowed, and the unemployment rate has edged up but remains low,"
"Inflation has moved up and remains somewhat elevated."
"I think you can think of this as a 'risk management' rate cut,"
"suggest that the labor market is really cooling off, and it's time to take that into account in our policy,"
The Federal Open Market Committee lowered the federal funds rate to a target range of 4.00%–4.25%, the first adjustment since December. The committee noted job gains have slowed, the unemployment rate has edged up but remains low, and inflation has moved up and remains somewhat elevated. Chair Jerome Powell characterized the quarter-point cut as a "risk management" decision and cited revisions that suggest the labor market is cooling. Newly confirmed governor Stephen Miran dissented, preferring a half-point cut, while projections showed a median expectation for two more cuts this year and one additional cut in 2026. Two Trump appointees, Christopher Waller and Michelle Bowman, supported the quarter-point cut.
Read at Axios
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