Fed Cuts Rates by Quarter-Point; Powell Cites Weakness in Jobs
PositiveFinancial Markets

The Federal Reserve has decided to cut its benchmark interest rate by a quarter percentage point, a move that reflects growing concerns about weakness in the labor market. This decision comes after significant pressure from the White House to reduce borrowing costs, and it signals a proactive approach to stimulate the economy. Chair Jerome Powell highlighted the need for this adjustment, especially after maintaining steady rates since December. With two more reductions anticipated this year, this could provide relief for borrowers and boost economic activity, making it a crucial development for both consumers and businesses.
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