Summary
The U.S. Federal Reserve has lowered its key interest rate by 0.25%, marking the last rate cut of the year. This decision comes amid slow job growth and rising inflation, with ongoing government data collection challenges affecting economic assessments. Political dynamics also influenced the decision, as President Trump sought more aggressive rate cuts.
Key Facts
- The Federal Reserve cut interest rates by 0.25%, setting them between 3.50% and 3.75%.
- Job growth in the U.S. has slowed, and unemployment has slightly increased.
- Inflation has risen since earlier in the year, which influenced the rate cut.
- An 89% probability of a rate cut was predicted by the CME Fed Watch tool.
- Government data collection was affected by a 43-day shutdown, impacting economic reports.
- New economic data showed labor costs increased by 0.8% in the third quarter, less than expected.
- President Trump has pressured the Federal Reserve for larger rate cuts.
- Fed board member Stephen Miran pushed for a bigger rate cut than was implemented.
