Federal Reserve Cuts Interest Rates to 4.00-4.25%
The Federal Reserve cut interest rates to 4.00-4.25% amid ongoing pressure from the White House. The nearly unanimous decision signals two more cuts expected this year. President Trump continues pushing for more aggressive monetary easing.
Federal Reserve Chair Jerome Powell addresses reporters following the rate decision
The U.S. Federal Reserve has cut interest rates by 0.25 percentage points to 4.00-4.25%. This move was widely expected by financial markets.
The central bank signaled it plans two more rate cuts this year. Only one additional reduction is anticipated for next year according to AP news agency.
Stock markets showed a brief uptick following the announcement before settling back down. The decision was nearly unanimous among Fed officials.
Only newly appointed board member Stephen Miran dissented. Miran, an economic advisor at the White House nominated by President Donald Trump, wanted a double cut of 0.50 percentage points.
Fed Chair Jerome Powell continues facing pressure from President Trump. Trump has repeatedly demanded more aggressive rate cuts and criticized Powell's cautious approach.
Last year, the Fed reduced rates three times. They cut by 0.50 percentage points last September, followed by 0.25 percentage point reductions in November and December.
The ongoing tension between the White House and the independent central bank raises questions about political influence on monetary policy. This marks the first rate cut since December 2024.