The US Federal Reserve has reduced interest rates for the first time since December Business and Economics News

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The central bank’s reduction in the labor market comes, which stopped economic growth.

The Federal Reserve of the United States will reduce interest rates by a quarter of a percentage point, so it will now be between 4.00 percent and 4.25 percent, as the slowdown in economic growth in the labor market slows down.

The central bank announced its decision on Wednesday afternoon.

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Economists were widely expecting a large -scale reduction at a basis point, as CME Fedwatch – a group that tracks the possibility of monetary policy decisions – has had 96 percent possibilities. One basis point is one hundred percentage points.

Before Wednesday, the Federal Reserve was the last reduction rate in December By 25 basis points, the third reduction in the past year, with a standard price of between 4.25 per cent and 4.50 percent, as it has been fixed since then.

The President of the Federal Reserve, Jerome Powell, stressed that the uncertainty in the economy kept the Federal Reserve cautiously, on the pretext that maintaining rates gave the elasticity of politicians with the transformation of conditions.

This reduction comes as a reaction to the changing economic conditions, following a large number of reports of weak jobs that show slowdown in the labor market and a slight rise in inflationary pressures.

The central bank said in a press statement: “Modern indicators indicate that the growth of moderate economic activity in the first half of the year. Job gains have slowed down, the unemployment rate has increased but it is still low. The inflation has risen and remains somewhat high,” the central bank said in a press statement.

“The uncertainty about economic expectations is still high. The committee is concerned with the risks to the two sides of its double mandate and judges that have increased negative risks to employment.”

Investors are also awaiting indicators from the central bank on whether it will reduce interest rates twice or three times for the rest of the year, as economic uncertainty weighs to the labor market and the wider economy, while the costs of goods and services increase in light of the pressures that depend on customs tariffs.

Political pressure

The latest pieces come at a time of increased scrutiny and pressure on the Federal Reserve, which has always been It confirmed its independence From political pressure. But for several months, US President Donald Trump has publicly attacked the central bank, and Bowell mocked he was “very late Powell” because of his caution in lowering prices.

At the same time, the Republicans -led White House sought to overthrow Federal Reserve Governor Lisa Cook, Which was appointed by former US President Joe Biden, a democratic, citing the alleged fraud on the mortgage.

On Monday, the US Court of Appeal prevented Trump from removing it. The administration said it would challenge the ruling.

“The president removed Lisa Cook for the reason. The administration will resume this decision and look forward to the final victory over this issue,” said White House spokesman Kush Disi on Tuesday.

On the same day, Stefan Miran, Chairman of the Economic House of Economists in Trump, has sworn in the constitutional oath to fill a temporary seat in the Federal Reserve left by Adriana Krager until January, while the White House is looking for a permanent alternative.

Miran pledged to act independently, however His close relationships To the Trump administration – and his work as a colleague at the Manhattan Conservative Institute – raised doubts. His confirmation of the Senate fell largely on the party’s lines, 47-48, and the Senator Lisa Morkovsky from Alaska was the only Republican who opposes him.

On Monday, Senate minority leader Chuck Schumer Miran described “nothing more than the tongue of Donald Trump at the Federal Reserve.”

The market responds

As of 2 pm in New York (18:00 GMT), American markets are heading up. Nasdak revolves around it even with the opening of the market, the S& P 500 0.2 and Dow Jones Industrial External increases by 1 percent.