Himal Hub/The U.S. Federal Reserve cut its benchmark interest rate by 0.25% to 4%–4.25%, the first cut this year, aiming to support a weakening labor market. Chair Jerome Powell said risks to jobs now outweigh inflation concerns.
President Trump, who has pushed for deeper cuts, recently clashed with the Fed over its independence and attempted to remove Governor Lisa Cook, though courts blocked the move.
The Fed projects two more cuts this year, while dissenting board member Stephen Miran backed a larger half-point reduction.
