WASHINGTON - The Federal Reserve cut its key interest rate by a quarter-point and indicated that two more cuts could follow before the end of the year.

The Fed has been under relentless pressure from President Donald Trump to cut rates. The central bank has held rates steady since late 2024 over worries that the Trump administration’s unpredictable tariff policies will reignite inflation.

What they're saying:

"Downside risks to employment have risen," the Fed said in a statement after its two-day meeting.

Fed officials also signaled that they expect to reduce their key rate twice more this year, but just once in 2026, which may disappoint Wall Street. Before the meeting, investors had projected five cuts for the rest of this year and next.

The other side:

Just one Fed policymaker d

See Full Page