"The US Federal Reserve , commonly known as the Fed, lowered its benchmark rate Wednesday by a quarter percentage point, the first such cut since last year. The Fed cut the benchmark lending rate to a range between 4.0% and 4.25%. The Fed paused its easing cycle in January due to uncertainty over how President Donald Trump's import tariffs might affect inflation and the overall economy."
"Tension between the White House and the Fed Trump has been pushing Federal Reserve Chair Jerome Powell, who acts independently of the White House, to cut interest rates for months. He has tried to pressure Powell to resign and has openly considered firing him. On Tuesday, Democrats introduced a Senate bill aimed at reinforcing the separation between the White House and the Federal Reserve, just hours after White House official Stephen Miran was sworn in as a Fed governor."
The Federal Reserve lowered its benchmark rate by a quarter percentage point to a 4.0%–4.25% range, marking the first cut since last year. The Fed had paused easing in January amid uncertainty over President Trump's import tariffs and their effect on inflation and the economy. Markets anticipate further cuts in October and December despite inflation running above the Fed's 2% target. The Fed faces the dual challenge of persistent inflation and a weakening jobs market while navigating political pressure from the White House. Legal and legislative moves are underway concerning Fed governance and independence, and projections now extend through 2028.
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