Thursday, September 18, 2025 -Federal Reserve Chair Jerome Powell has rallied his colleagues around a cautious approach as both economic weakness and political interference loom large.
The Fed delivered a quarter-point rate cut, lowering its benchmark to 4.00–4.25 percent, its first move since December, while signaling more cuts could follow this year. Powell described the step as a precaution against a cooling labor market.
Concerns about rising unemployment, particularly among younger and minority workers, shaped the decision.
At the same time, Powell faces intensifying pressure from President Trump, who has criticized the Fed for not easing faster and attempted to influence its leadership. Powell emphasized the need to protect the central bank’s independence, even as political risks mount.
Looking ahead, the Fed expects to cut rates further, though Powell stressed that future moves will depend on economic data. Markets have responded cautiously, balancing relief over lower borrowing costs with unease about inflation and the risks of political meddling.
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