Fed Cuts Interest Rates

The Federal Reserve cut interest rates by a quarter point at its September meeting, marking the first reduction in nine months.

The Fed had paused rate cuts in December 2024 amid inflation concerns. The central bank had previously cut rates by 1 percentage point between September and December 2024 from a two-decade high. President Trump had sparred with Fed Chair Jerome Powell for months over the central bank's reluctance to cut rates, creating political pressure on an institution that has generally operated independently from direct political control.

The Fed lowered its key interest rate by a quarter of a percentage point on Wednesday to a range between 4% and 4.25%, the lowest level in almost three years.