"Faced with fears of an economic slowdown and the risk of runaway prices, the Federal Reserve (Fed) has opted for the first course of action. The U.S. central bank decided on Wednesday to cut interest rates by 0.25 percentage points, bringing the target range to 3.75%4%. This marks the second consecutive reduction in the cost of money, following a similar cut in September aimed at stimulating economic activity."
"Dozens of federal agencies have closed or are operating at reduced capacity due to government shutdown. Even so, the most recent data indicate a slowdown in the labor market. Consumer confidence fell for the third consecutive month in September and is now below last year's levels, according to the indicator released on Tuesday. Contributing factors include concerns about the labor market, the cost of living, and a significant increase in uncertainty over tariffs approved by U.S. President Donald Trump."
The Federal Reserve cut interest rates by 0.25 percentage points to a 3.75–4.0% target range, marking a second consecutive reduction. Economic slowdown signals have increased amid a partial government shutdown that has limited data availability. Recent indicators show a slowing labor market and three straight monthly declines in consumer confidence, driven by job market worries, cost-of-living pressures, and tariff uncertainty. Employment figures were revised downward showing weaker job creation, while the unemployment rate remains low at 4.3%. Analysts link lower labor supply to stricter immigration policies, resulting in fewer hires despite limited job losses.
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