The Federal Reserve on Wednesday cut interest rates by a quarter point for the second meeting in a row, signaling policymakers are still more concerned about the labor market than inflation.

The widely expected cut lowered rates to a new range of 3.75% to 4%. It’s the first time since 2022 that rates set by the Fed have dipped below 4%.

Policymakers were split over the decision. Some have advocated for more caution, worried that President Trump’s tariffs could hit inflation. But others have argued that any inflation impacts would be short-lived, so rates should be cut aggressively to stimulate growth in the labor market.

Stephen Miran – the newest Fed governor and Trump’s former economic adviser – voted against the quarter-point cut for the second meeting in a row, instead pushing f

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