Summary
The U.S. central bank, known as the Federal Reserve, is expected to lower interest rates by 0.25 percentage points. This decrease aims to stimulate the economy by making borrowing cheaper. The decision follows trends in other countries and growing concerns about a weakening job market in the U.S.
Key Facts
- The Federal Reserve is expected to lower the interest rate by 0.25 percentage points.
- This change will bring the interest rate to a range of 4% to 4.25%.
- The interest rate cut is the first since December of the previous year.
- Other central banks in the UK, Europe, and Canada have already reduced rates.
- U.S. job market data shows weak job growth or losses in recent months.
- President Trump has criticized the Federal Reserve for not lowering rates more significantly.
- Inflation in the U.S. has fallen since 2022 but remains slightly above the Fed's 2% target.
- The rate cut decision is happening amid concerns about the labor market slowdown.
