Federal Reserve cuts benchmark interest rate by 0.25 percentage points

The Federal Reserve cut its benchmark interest rate by 0.25 percentage points, bringing it to its lowest level in over three years. This marks the third consecutive rate cut this year, totaling 0.75 percentage points. Despite economic uncertainties due to the recent government shutdown, the Fed is closely monitoring job growth and inflation. The Fed hinted at only one rate cut in 2026 and issued projections for inflation, economic growth, and unemployment. The move aims to stimulate hiring and boost consumer spending. However, not all members of the Fed’s rate-setting panel agreed with the decision to cut rates.

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