Federal Reserve's Interest Rate Decision

The Federal Reserve has implemented a 25 basis point cut to its benchmark interest rate, adjusting the target range to between 4.5% and 4.75%. This decision was unanimous among policymakers, reflecting a consensus on the current economic landscape. While inflation has shown signs of progress, the Fed's statement indicates that it remains somewhat elevated, with the committee no longer expressing greater confidence in inflation trends toward the 2% target. The economic assessment also hints at a weakening labor market, noting a rise in unemployment despite overall low rates.