The Federal Reserve on Wednesday cut its key interest rate by a quarter-point, the Associated Press reports.
The central bank also signaled two more rate cuts in 2025 and one in 2026 as concern grows over the health of the U.S. labor market.
The rate cut, which lowered the Fed’s short-term rate to 4.1% from 4.3%, is the first since December 2024. Fed officials had kept the rate unchanged for much of this year as they evaluated the impact of tariffs, tighter immigration enforcement and more on the nation’s economy.
Inflation remains modestly above the Fed’s 2% target, but hiring has nearly ground to a halt in recent months, while the unemployment rate has climbed.
