The Jerome Powell-led US Federal Reserve announced its second rate cut of 2025. (Photo: NDTV Profit) Show Quick Read Summary is AI Generated. Newsroom Reviewed

The US Federal Reserve on Wednesday announced a quarter point rate cut, as it pointed towards the sluggish growth in jobs and downside risks to employment.

This has trimmed the overnight lending rates to a range of 3.75–4%, as against the prevailing 4–4.25%. This was in line with the expectations, as the CME Fed Watch had projected a 97.2% probability of a 25-basis-point rate cut.

The Fed decision was not unanimous, as Governor Stephen Miran voted for a 50-basis-point cut, whereas Governor Jeffrey Schmid was in view of maintaining status quo.

The rate reduction comes amid the ongoing federal government shutdown, which was

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