The US Federal Reserve cut interest rates Wednesday, its first trim since last December.
The quarter-point cut came against the backdrop of unprecedented pressure on the central bank from President Donald Trump, who has pushed for the Fed to lower the cost of borrowing and tried to oust a Fed governor to secure a panel of loyalists.
Investors hope Wednesday’s decision will bolster the cooling labor market and spur more growth, but tariffs and layoffs could complicate policymakers’ path.
Fed officials penciled in two more reductions, while the sole dissent from a new Trump appointee — who wanted a more aggressive cut — reflected the fraying consensus that Chair Jerome Powell worked hard to keep together.
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