Fed Delivers Third Straight Rate Cut as Powell Responds to Inflation and Job Market Strain

The US Federal Reserve lowered its benchmark interest rate by 25 basis points to 3.50%–3.75%, marking its third consecutive cut since September 2025. Policymakers cited elevated inflation and a softening labour market, with unemployment at 4.4% and modest job additions despite a government shutdown. The committee emphasised balancing price stability with employment support while signalling continued data-driven decisions.