Fed's 0.25% rate cut aims to boost jobs, not control inflation

NORFOLK, Va. — The Federal Reserve announced a quarter-percent interest rate cut on Wednesday, a move its chairman referred to as a "risk management" cut.

To understand the implications for consumers and the economy, 13News Now spoke with Dr. Robert McNab, director of the Dragas Center for Economic Analysis and Policy at Old Dominion University.

Dr. McNab explained that the Fed's primary goals are to promote job growth and keep inflation in check. The decision to cut rates now, he said, is a sign that the Fed is more concerned with the national job market than it is with rising prices.

"They are taking a risk. They are taking a gamble," McNab said. "They know that prices are going to increase because of tariffs, but they are expecting that job growth is going to slow even further, so th