Fed Reserve cuts rates by quarter point

The Federal Reserve cut its key interest rate again on Wednesday, the rate went from 4.1% to about 3.9%. Fed Reserve Chair Jerome Powell spoke to the press following the Fed's second rate cut of 2025.

The Federal Reserve cut its key interest rate on Wednesday.

By the numbers:

The rate went from 4.1% to about 3.9%. The central bank had cranked its rate to roughly 5.3% in 2023 and 2024 to combat the biggest inflation spike in four decades

Big picture view:

The Fed stayed course on its expected cut despite missing government data clouding the view of the economy amid the shutdown.

The missing hiring and inflation data that has not been released during the shutdown raises risks for the Fed because the agency is widely expected to keep cutting rate

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