Federal Reserve Interest Rate Decision

The Federal Reserve has implemented a 25 basis point reduction in its benchmark interest rate, bringing the target range down to between 4.5% and 4.75%. The decision was unanimous, marking a contrast to earlier meetings where dissent was present. The Fed's statement emphasized progress in managing inflation, although it made significant changes, such as removing the phrase indicating increased confidence in inflation moving towards the 2% target. This adjustment signals a cautious approach, reflecting concerns about the labor market and broader economic conditions.