Jill Schlesinger

The long-awaited resumption in the Fed’s interest rate cuts occurred, as the central bank weighed the risk associated with a decelerating labor market and accelerating inflation and determined that the job market was the bigger risk to the overall economy.

The central bank reduced short term rates by a quarter of a percentage point (0.25 percent), putting the Fed funds rate at a range of 4.25-4.5%.

It was just a year ago when the Fed cut rates after the pandemic-induced inflationary surge. They cut two more times in October and December 2024, by 0.25% each, but then paused the campaign, due to two developments: the uncertainty associated with President Donald Trump’s tariffs and new immigration initiatives. Fed officials wanted to wait and see the economic impact of

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