"The US Federal Reserve cut interest rates on Wednesday, its first rate cut since December, as the central bank moved to stabilize a wobbling labor market even as Donald Trump's tariffs continue to push up prices. Rates are now at a range of 4% to 4.25% the lowest since November 2022. But the decision is unlikely to satisfy Trump, who has lambasted the Fed for acting too late and called for a far bigger cut."
"Job gains have slowed and the downside risks to unemployment have risen, Fed chair Jerome Powell said during a closely watched press conference. At the same time, he warned, inflation has picked up. It is reasonable to expect Trump's tariffs will lead to a one-time shift in prices, Powell suggested. But it is also possible that the inflationary effects could instead be more persistent, and that is a risk to be assessed and managed, he said."
The US Federal Reserve cut interest rates to a 4%–4.25% range, the lowest since November 2022 and the first cut since December. Job gains have slowed and downside risks to unemployment have risen. Inflation has picked up, and tariffs by Donald Trump could cause a one-time price-level shift or potentially more persistent inflationary effects. The Fed must prevent a one-time increase from becoming ongoing inflation. President Trump moved to remove Fed governor Lisa Cook but courts blocked the removal and the White House appealed. Adriana Kugler resigned; Stephen Miran was confirmed and dissented, preferring a larger cut.
Read at www.theguardian.com
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