The Federal Reserve cut its interest rate by 25 points this Wednesday, and projected that it will make two more cuts this year due to the low earnings of the labor market in the United States.
This is the first cut the Federal Reserve makes in 2025, signaling the increase in inflation and that the growth of economic activity moderated in the first half of the year.
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The Federal Open Market Committee stated that “in support of its goals and in view of the change in the balance of risks, the committee decided to lower the target range for the federal funds rate by a quarter of a percentage point to reach between 4 and 4.25 percent”.
In a statement, the
FOMC stated that in considering any further adjustments to the target range for the federal funds rate, the committee will assess incoming data, the outlook for evolution, and the balance of risks.
In a statement, it was noted that the 12 members of the FOMC, including
Lisa Cook and
Stephen Miran, attended the meeting. Although 11 members voted in favor of the 25 basis point cut, Miran voted against the action and spoke in favor of a 50 basis point cut.
While on Monday, the federal appeals court rejected President
Donald Trump‘s attempt to remove Federal Reserve Governor Lisa Cook, just hours before the Fed’s two-day meeting began.
