Fed cuts interest rates by a quarter point amid apparent split over US economy

Core Viewpoint - The US Federal Reserve has cut interest rates by a quarter point for the third time this year, reflecting internal divisions on how to manage the economy amid rising inflation and unemployment [1][4]. Group 1: Interest Rate Decisions - The Federal Open Market Committee (FOMC) voted nine to three to lower rates to a range of 3.5% to 3.75%, indicating a split among committee members who usually vote unanimously [1]. - New projections suggest hesitance to cut rates further next year, which may create tensions between the Fed and the White House [2]. Group 2: Economic Conditions - Recent economic data shows inflation increased from 2.3% in April to 3% in September, and unemployment rose from 4% in January to 4.4% in September, complicating the Fed's decision-making [4]. - The Fed is facing challenges due to a lack of comprehensive price and labor market data, exacerbated by the government shutdown [3]. Group 3: Political Influence - President Trump and his allies have publicly criticized Fed officials for not lowering interest rates, despite rising inflation, attributing price increases to factors from the previous administration [6]. - Trump has suggested Kevin Hassett as a potential nominee to replace Fed Chair Jerome Powell, whose term ends in May [10].