The Fed lowered rates to their lowest level in three years, aiming to support hiring despite inflation concerns and internal policy disagreements.
The U.S. Federal Reserve reduced interest rates by 25 basis points to a range of 3.75%-4.00%, marking its second consecutive cut in 2025 and the lowest level in three years. The move aims to counter slowing hiring across the economy. Two Fed officials dissented, one favoring a larger cut and another opposing any change amid ongoing inflation pressures.