After Rate Cut Powell Says Jobs Market No Longer Very Solid

Core Points - The Federal Reserve lowered its benchmark interest rate by 0.25 percentage points and indicated two more reductions are expected this year due to pressure from the White House [1] - Chair Jerome Powell cited signs of weakness in the labor market as a reason for the rate cut, noting that job creation is below the break-even rate needed to maintain the unemployment rate [2] - The Federal Open Market Committee voted 11-1 to adjust the federal funds rate target range to 4%-4.25%, after maintaining rates steady for five consecutive meetings [3] Decision Dynamics - Governor Stephen Miran, who favored a larger half-point cut, was the only dissenting vote, highlighting a notable victory for Powell amid expectations of multiple dissents [4] - The committee's decision reflects a unified approach despite external pressures, with Powell emphasizing the need to manage inflation risks stemming from tariffs [5] - Powell described the Fed's future rate decisions as being made on a "meeting-by-meeting" basis, indicating a cautious outlook [6]