Overview
- The Federal Reserve lowered the federal funds target by 25 basis points to 3.75%–4.00%, marking a second cut in six weeks.
- The vote was 10–2, with Kansas City Fed’s Jeffrey Schmid favoring no change and Fed Governor Stephen Miran advocating a larger reduction.
- Chair Jerome Powell cited rising labor‑market risks in recent months while the government shutdown has curtailed key economic data used to guide policy.
- Markets had largely priced in the step and still expect at least one more cut this year, though Powell said a December move is “anything but certain.”
- Political pressure has intensified as Trump derides Powell, installs ally Miran, seeks to remove Lisa Cook before a temporary Supreme Court block, and has Treasury Secretary Scott Bessent advancing a shortlist of potential successors.