Federal Reserve Cuts Interest Rates Amid Economic Uncertainty

The Federal Reserve cut interest rates by a quarter point for the third time this year, lowering the rate to a range of 3.5% to 3.75%. This decision reflects a divided Federal Open Market Committee, which voted nine to three, indicating differing views on the economy's health.

Fed Chair Jerome Powell emphasized that while the committee aims for unity, uncertainty remains due to factors like tariffs and labor force changes stemming from past policies. Inflation rose slightly from 2.3% in April to 3% in September, while unemployment increased from 4% to 4.4% during the same period, complicating the Fed's decision-making.

Powell noted that the job market may be weaker than reported, with potential adjustments to job creation figures suggesting an average loss of 20,000 jobs monthly since spring. He reiterated the need for careful evaluation of upcoming economic data, especially given the government shutdown's impact on data collection.

Looking ahead, projections show a hesitance to cut rates further next year, with Powell stating that the Fed is well-positioned to wait and see how the economy evolves. Trump's criticism of the Fed’s action included a call for more aggressive cuts, highlighting the ongoing tension between the White House and the central bank.