Core Points - The Federal Reserve approved a quarter-point rate cut, lowering the overnight funds rate to a range of 4.00%-4.25% [1][2] - The decision was made with an 11-to-1 vote, indicating less dissent than expected, with Governor Stephen Miran advocating for a half-point cut [1][3] - The Fed signaled that two more rate cuts are anticipated before the end of the year due to concerns over the U.S. labor market [2][5] Economic Conditions - The Fed characterized economic activity as "moderated," noting slowed job gains and elevated inflation [4] - Projections indicate slightly faster economic growth than previous estimates, while unemployment and inflation outlooks remain unchanged [8] - The unemployment rate reached 4.3% in August, the highest since October 2021, with job creation stagnant and nearly a million fewer jobs created than initially reported [13] Political Influence - The meeting was preceded by significant political drama, with President Trump advocating for aggressive rate cuts [3][10] - Miran's appointment and his criticism of Chair Jerome Powell raise questions about the Fed's independence from political influence [10] - A court blocked Trump from removing Governor Lisa Cook, who voted for the quarter-point cut, amidst accusations of mortgage fraud [11]