Fed Trimmed Rates, More Cuts Expected

The Federal Reserve cut its benchmark interest rate by 25 basis points on Wednesday, lowering the federal funds target range to 4.00%–4.25%. The widely expected move marks the central bank's fourth rate cut since 2024 and underscores growing concerns about slowing labor markets, even as inflation pressures remain elevated. Looking ahead, officials forecast just one additional cut in 2026, fewer than markets had priced in, with the longer-run neutral rate median holding at 3%. Six policymakers argued for an ...