The Summer I Cut Rates

“When our goals are in tension like this, our framework calls for us to balance both sides of our dual mandate.” - Jay Powell The Federal Reserve lowered its benchmark interest rate by a quarter of a percentage point on Wednesday, citing rising risks to the labor market as the key driver behind its first rate cut since December 2024. The move, which has been widely expected per Fed Funds Futures since the July jobs report, brings the target federal funds rate to a range between 4.00%–4.25...

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