Fed cuts US interest rates again despite missing data

The US Federal Reserve, led by Chair Jerome Powell, has cut interest rates for the second time in months, aiming to bolster jobs and growth amid signs of a slowing labor market. Despite inflation concerns, the Fed dropped its key lending rate by a quarter of a percentage point, putting it between 3.75% and 4%. The move comes as the US government shutdown delays crucial economic data, forcing the Fed to rely on alternative sources. While not all Fed committee members agreed, most officials were concerned about the job slowdown, with some even advocating for a bigger cut. Investors and economists now await further rate changes, with Wall Street betting on another quarter-point cut in December. However, upcoming jobs reports could influence the Fed's decision, and pressure on Powell is mounting as President Trump calls for deeper cuts and considers replacing him. The Daily News Now! — Every city. Every story. AI-powered. Hosted on Acast. See acast.com/privacy for more information.