The Federal Reserve Board on Wednesday cut interest rates for the first time in 2025, saying that while inflation is rising, the weakening labor market merited an adjustment.

"Job gains have slowed, and downside risks to employment have risen," Federal Reserve Chair Jerome Powell said in a news conference. “At the same time, inflation has risen recently and remains somewhat elevated.”

Powell: "Job gains have slowed and downside risks to employment have risen. At the same time, inflation has risen recently and remains somewhat elevated ... GDP rose at a pace of around 1.5% in the first half of the year, down from 2.5% last year."

“There are no risk-free paths now. It’s not incredibly obvious what to do,” Powell said of the Fed’s decision to cut rates—an ominous comment.

The rate cut com

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