Fed cuts interest rates for second time this year amid labor market weakness

Group 1 - The Federal Reserve announced its second interest rate cut of the year, lowering the benchmark federal funds rate by 25 basis points to a range of 3.75% to 4% [1] - This follows a previous rate cut of the same size in September, marking the first reduction of the year [1] - The decision aims to support the labor market despite inflation remaining above the central bank's target [1][2] Group 2 - Economic data indicates a slowdown in the labor market as businesses face challenges related to trade and immigration [2] - Inflation has been trending higher due to tariff-related price increases affecting government data [2] - The Federal Reserve is balancing its dual mandate of maintaining stable prices aligned with a 2% long-run inflation target while promoting maximum employment [2]