Federal Reserve lowers interest rates by 0.25% in first cut since December

The Federal Reserve has reduced its benchmark interest rate by 0.25 percentage points, marking the first cut since December. This lowers the federal funds rate to a range of 4% to 4.25%. The move responds to a sluggish labor market and slower economic growth while trying to control rising inflation.

Fed Chair Jerome Powell noted the importance of prioritizing job growth over inflation. Amid political pressures, President Trump has criticized the Fed for not acting swiftly enough to boost the economy.

Analysts anticipate more rate cuts in upcoming meetings as economic conditions evolve.