The Federal Reserve lowered its policy rate by 25 basis points to a target range of 3.75%-4.00%, citing weak data and the effects of the U.S. government shutdown. Chair Jerome Powell emphasised that although easing was warranted, further cuts are not assured and will depend on incoming economic readings. Markets initially cheered the move but pared expectations for a December cut—probability slipping to roughly 71% from 90% pre-announcement. Attention now shifts to upcoming inflation and employment releases for guidance.