WASHINGTON, D.C. (LOOTPRESS) – The Federal Reserve on Wednesday announced its first interest rate cut of the year, lowering the benchmark rate by 25 basis points as signs of a weakening labor market outweighed concerns over elevated inflation.

With the move, the federal funds rate now sits in a range of 4% to 4.25%, marking the first cut since December 2024.

The decision follows five straight meetings earlier this year in which the Fed left rates unchanged amid economic uncertainty.

Policymakers have been closely monitoring data that show hiring has slowed while businesses face challenges tied to trade and immigration policies. Inflation has also remained elevated and ticked higher in recent months, with tariff-related costs adding pressure to consumer prices.

That combination has comp

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