Overview

• The Federal Reserve lowered its benchmark rate by 0.25 percentage points to a 4.00%–4.25% target range.
• Gary Cohn interpreted the Fed’s dot plot as pointing to about two more cuts in 2025, putting the federal funds rate near 3.6% by year-end.
• Cohn described a divided committee on further easing, with about seven opposed to another cut this year, ten favoring at least two, and one favoring more than two.
• Fed Chair Jerome Powell said the labor market is "really cooling off," and Cohn cited recent monthly job gains falling from well over 100,000 to under 50,000.
• Cohn said companies are trimming labor to protect margins as input costs rise, even as they announce substantial capital spending, and he noted the slowdown could prove temporary.