The Fed's decision on its benchmark interest rate shows unity against Trump's attacks

Core Viewpoint - The Federal Reserve's decision to reduce its key interest rate by a quarter-point was nearly unanimous, reflecting unity and independence despite pressure from President Trump for steeper cuts [2][4]. Group 1: Federal Reserve's Decision - The Federal Reserve reduced its key interest rate by 0.25 percentage points, with only one dissenting vote from Stephen Miran, a Trump appointee [2][4]. - The decision was made amid concerns about inflation remaining above the Fed's 2% target and rising unemployment [4]. Group 2: Political Context - President Trump has been pressuring the Fed for deeper rate cuts and has attempted to influence the board by floating potential replacements for current chair Jerome Powell [2][4]. - The situation is unprecedented as Trump sought to fire Fed governor Lisa Cook, which many legal experts view as a threat to the Fed's independence [2][4]. Group 3: Economic Implications - Economists noted that the Fed's nearly unanimous vote sends a strong message of independence and appropriateness for the economy, despite external pressures [2][4]. - Powell emphasized the challenges the Fed faces in determining the next steps, balancing between overstimulating the economy and worsening hiring slowdowns [4].