The Federal Reserve cut its interest rate by 25 basis points on Wednesday, and projected that it will make two more cuts this year due to weak gains in the U.S. labor market.
This is the first rate cut the Federal Reserve has made in 2025, citing rising inflation and a moderation in economic growth during the first half of the year.
The Federal Open Market Committee stated that "in support of its objectives and in view of the change in the balance of risks, the committee decided to reduce the target range for the federal funds rate by a quarter of a percentage point to between 4 and 4.25 percent.".
In a statement, the FOMC said that when considering further adjustments to the target range for the federal funds rate, the committee will evaluate incoming data, the outlook, and the balance of risks.
In a statement, they noted that all 12 members of the FOMC, including Lisa Cook andStephen Miran, attended the meeting. Although 11 members voted in favor of the 25-basis-point cut, Miran voted against the action and advocated for a 50-basis-point reduction.
Meanwhile, on Monday, the federal appeals court rejected President Donald Trump to remove Federal Reserve Governor Lisa Cook just hours before the Fed's two-day meeting was set to begin.
