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Fed Cuts Key Rate to 3.50%–3.75% Amid Persistent US Inflation
The Fed reduced rates to 3.
Markets reacted sharply after the Jerome Powell led Federal Reserve delivered a 25 basis point rate cut, lowering the federal funds target range to 3.50%–3.75%. The move marked the third consecutive cut since September 2025, reflecting the Fed’s effort to balance elevated inflation with softening labor conditions. Policymakers stressed that future adjustments will depend on incoming data, including the recent uptick in unemployment to 4.4% and slowing job additions.