Fed Cuts Rates by 25 Basis Points

"The Federal Reserve announced Wednesday afternoon the first cut to its interest rate benchmark since President Donald Trump's inauguration. The benchmark was lowered by 25 basis points. In a rare show of dissent, however, newly appointed board member Stephen Miran pushed for a 50 point cut. Trump has aggressively pushed the Fed to cut rates, including sharply criticizing the chairman of the Federal Reserve, Jerome Powell."

"In a press conference following the announcement, Powell cited a slower-than-expected job market and inflation risk as the principal causes for the cut. "The concern is that if you start to see layoffs, there won't be a lot of hiring going on," he said. The reduced interest rate will make borrowing more affordable and is intended to stimulate investment, ideally increasing the number and quality of available jobs."

The Federal Reserve lowered its benchmark interest rate by 25 basis points, representing the first cut since President Donald Trump's inauguration. Newly appointed board member Stephen Miran dissented and urged a 50 point reduction. President Trump had pressured the Fed to cut rates and sharply criticized Chairman Jerome Powell. Powell cited a slower-than-expected job market and inflation risk as the principal reasons for the decision and warned that layoffs could reduce hiring. The rate reduction aims to make borrowing more affordable and stimulate investment, with the goal of increasing the number and quality of jobs. Stock indexes rose to record highs following the announcement.

Read at The American Conservative