Federal Reserve Cuts Interest Rates Second Consecutive Time Amid Economic Uncertainty

The U.S. Federal Reserve cut interest rates by a quarter percentage point for the second consecutive meeting, lowering the target range to 3.75-4.00 percent to address a weakening labor market amid economic uncertainty caused by tariffs and a prolonged government shutdown. The decision, marked by a 10-2 vote, reflected internal divisions, with dissenters favoring either a larger cut or no change. The Fed also announced it would stop reducing its balance sheet starting December 1, signaling a pause in quantitative tightening to provide the economy with more support. Economic indicators suggest moderate growth, though job gains have slowed and unemployment has risen slightly, with inflation remaining somewhat elevated. The government shutdown has impeded the release of official economic data, complicating policymakers' ability to assess conditions fully. Market expectations point toward further rate cuts in the coming months to sustain economic stability and job market strength.