US and Canada Slash Interest Rates as Economic Pressures Mount — But Will It Be Enough to Avert a Slowdown?

Powell cuts rates—borrowing costs fall, but savings may dip. (Credit: Karola G : Pexels)

On 29 October 2025, the US Federal Reserve and the Bank of Canada both cut their key interest rates by 0.25%, aiming to bolster their respective economies amid ongoing strains. This was only the second rate cut in the US this year, compared to four in Canada, highlighting differing economic pressures.

Why the Rate Cuts?