The Federal Reserve lowered its benchmark interest rate by a quarter of a percentage point on Wednesday, a widely anticipated move that comes amid a worsening data blackout, a cooling labor market, and relentless political pressure from President Donald Trump.

The decision brings the Fed’s policy rate down to roughly 3.75% to 4.0% — its lowest level in three years — and marks the second rate cut since Trump’s return to office. Markets had fully priced in the move: CME’s FedWatch tool showed a near-100% probability of a 25-basis-point reduction heading into the meeting.

In its statement, the Federal Open Market Committee said “economic activity has been expanding at a moderate pace,” but acknowledged that job gains have slowed and the unemployment rate has edged higher, even if it “rema

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