Fed Cuts Rates 2nd Time in 2025 by Quarter of a Percent

The United States Federal Reserve cut interest rates by a quarter of a percentage point, a move that was a split decision among policymakers. The Fed also announced limited purchases of Treasury securities to maintain liquidity. The decision came at a challenging time due to the ongoing federal government shutdown, which made economic data harder to come by. The policy rate is now set within a range of three point seven five to four percent. Two members of the Fed’s board voted against the move, with one wanting a deeper cut and the other thinking no cut was needed due to inflation concerns. The Fed also signaled changes to its balance sheet, focusing on Treasury bills to add stability to short-term funding markets. The economy is still growing at a moderate pace, but hiring has slowed down. Inflation has edged up to about two point seven percent, but it hasn’t spiked as much as expected. Fed Chair Jerome Powell is expected to hold a press conference to explain more about these decisions and the mixed signals the economy is sending. The Daily News Now! - Every city. Every story. AI Powered. Hosted on Acast. See acast.com/privacy for more information.