Jerome Powell and the Fed lowered interest rate by 0.25%

Fed lowers interest rates by 0.25 percentage points in first cut since 2024

The Federal Reserve on Wednesday lowered its benchmark interest rate by 0.25 percentage points — its first cut since December — as the U.S. grapples with a stalling labor market and slower economic growth.

The Fed cut reduces the federal funds rate — what banks charge each other for short-term loans — to between 4% and 4.25%, down from its prior range of 4.25% to 4.5%. The last time the central bank eased borrowing costs was in December 2024, when it also trimmed rates by a quarter of a percentage point.

Federal Reserve officials are also penciling in two more rate cuts in 2025, but only one in 2026, according to the central bank's summary of economic projections. That may disappoint Wall Street, with investors before the meeting projecting a total of five cuts over the rest of the year and 2026.

Only one member voted against...he wanted a rate cut of 0.50.

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Jerome

Jerome Powell's Political Games

Jerome Powell just made one admission about Trump’s tariffs that has the President seeing red

Powell drops bombshell confession at Portugal conference

Jerome Powell has been a thorn in Donald Trump’s side since day one.

The Federal Reserve Chair keeps finding new ways to sabotage Trump’s economic agenda.

And Jerome Powell just made one admission about Trump’s tariffs that has the President seeing red. Federal Reserve Chair Jerome Powell traveled all the way to Portugal to deliver what might be the most tone-deaf comments of his entire career.

Speaking at a financial conference on Tuesday, Powell essentially admitted he’s been holding the American economy hostage over President Trump’s tariff policies.

The confession came when Powell was asked directly whether the Fed would have cut interest rates more aggressively if not for Trump’s tariffs.

"So I do think that—I think that’s right," Powell responded. "We’re in effect—we went on hold when we saw the size of the tariffs, and essentially all inflation forecasts for the United States went up materially as a consequence of the tariffs."

Instead of following the economic data, Powell has been making political calculations about Trump’s trade policies.

Current Annual inflation for the 12 months ending in May 2025 is 2.35%. Interest is at 4.5%

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