Summary
The Federal Reserve cut its key interest rate again, reducing it to about 3.6%, but hinted it might pause more cuts soon. This decision contrasts with President Trump’s desire for faster rate reductions. The Fed is balancing inflation concerns, slowing job growth, and a potential change in its leadership.
Key Facts
- The Fed lowered the interest rate by a quarter-point to around 3.6%.
- This is the third consecutive meeting where the Fed has cut rates.
- President Trump wants the Fed to cut rates more sharply.
- The Fed has indicated there might be just one more rate cut next year.
- Inflation remains above the Fed’s target, although it has decreased from previous highs.
- The job market is showing signs of slowing, with unemployment at 4.4%.
- There is a split within the Fed on the pace and need for rate adjustments.
- President Trump may choose a new Fed chair soon, impacting future rate decisions.
