The Brief

The Fed cut its key rate to 4.1% and signaled two more cuts this year.

Powell kept unity on the committee, with only one Trump appointee dissenting.

Weak hiring, rising jobless claims, and stubborn inflation raise stagflation fears.

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.

The Marriner S. Eccles Federal Reserve building in Washington, DC, US, on Sunday, Jan. 12, 2025. Photographer: Samuel Corum/Bloomberg via Getty Images

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