The Federal Reserve has returned to easing mode after ten months of taking a wait and see approach on the U.S. economy.

In a widely expected move on Wednesday, the U.S. central bank cut its benchmark fed funds interest rate range by 25 basis points to 4%-4.25%, the lowest since December 2022.

The Fed acknowledged that economic growth in the first half of the year "moderated" and the job market has "slowed."

The decision follows growing signs that the U.S. labor market has begun to decisively weaken, the latest being the August employment report which showed the addition of just 22,000 jobs to the economy and the unemployment rate rising to 4.3%, the highest since 2021.

"The Fed is under pressure to lean more dovish, and any successor to Powell is likely to favor faster and deeper rate

See Full Page