Fed lowers interest rates, signals more cuts ahead; Miran dissents

Core Points - The Federal Reserve has reduced interest rates for the first time since December, responding to rising unemployment risks and indicating further cuts may follow [1][3] - The current benchmark interest rate is now set in the range of 4.00%-4.25% [3] - Fed Chair Jerome Powell emphasized the importance of monitoring inflation while addressing maximum employment concerns [4] Economic Indicators - The job market is showing signs of weakness, with higher unemployment rates among minorities and a declining workweek [1][5] - Recent job creation is below the break-even rate needed to maintain the current unemployment rate, with minimal hiring from businesses [4][6] - Payroll growth is nearing stall speed, indicating a potential slowdown in the labor market [6] Political Context - The decision to cut rates was influenced by political dynamics, including President Trump's attempts to influence the Fed's Board of Governors [2][7] - New Fed Governor Stephen Miran cast a dissenting vote, reflecting differing views on the extent of necessary rate cuts [2]