The Federal Reserve lowers its benchmark interest rate by 25 basis points to a target range of 4.00%–4.25% due to slower economic growth, rising unemployment risks, and persistent inflation pressures. Job gains have slowed, unemployment has edged up, and inflation remains above the Fed’s 2% target. Downside risks to employment prompted the rate cut. The Committee plans to continue reducing holdings of Treasury securities, agency debt, and mortgage-backed securities. Fed Chair Jerome Powell and Vice Chair John C. Williams voted in favor of the 25 basis point reduction, with one dissent from Stephen I. Miran who favored a deeper 50 basis point cut.

Read more at Quiver Quantitative: Federal Reserve Cuts Rates by 25 Basis Points, Citing Slower Growth and Rising Risks