The Federal Reserve cut interest rates by 0.25 percentage points on Wednesday, reducing the policy rate to a 4.00%-4.25% range.

This is the first rate cut since December and signals a shift in focus from inflation control toward addressing job market weaknesses.

The big picture: Fed officials indicated in their policy statement they will continue to lower borrowing costs steadily throughout the rest of 2025, projecting two more quarter-point cuts at upcoming meetings. • The decision drew support from most of President Donald Trump’s appointees on the Federal Open Market Committee, except new Governor Stephen Miran, who dissented in favor of a larger half-point cut. • Miran joined the Fed board just before the decision and is currently on leave from his role as head of the White House

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