The Federal Reserve lowered its benchmark interest rate by a quarter of a percentage point on Wednesday, a widely anticipated move that comes amid a worsening data blackout, a cooling labor market, and relentless political pressure from President Donald Trump.
The decision brings the Fed’s policy rate down to roughly 3.75% to 4.0%—its lowest level in three years—and marks the second rate cut since Trump’s return to office. Markets had fully priced in the move: CME’s FedWatch tool showed a near-100% probability of a 25-basis-point reduction heading into the meeting.
