{"id":20924,"date":"2025-10-31T10:36:25","date_gmt":"2025-10-31T10:36:25","guid":{"rendered":"https:\/\/cndailynews.store\/?p=20924"},"modified":"2025-10-31T10:36:25","modified_gmt":"2025-10-31T10:36:25","slug":"fed-cuts-interest-rate-by-quarter-point-amid-trump-pressure-shutdown-uncertainty","status":"publish","type":"post","link":"https:\/\/cndailynews.store\/?p=20924","title":{"rendered":"Fed Cuts Interest Rate by Quarter Point Amid Trump Pressure, Shutdown Uncertainty"},"content":{"rendered":"
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The Federal Reserve lowered its benchmark interest rate by a quarter of a percentage point on Wednesday, its second cut this year, amid intensifying pressure from President Donald Trump and ongoing economic uncertainty surrounding the government shutdown.<\/p>\n

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The Federal Open Market Committee voted 10 to 2 to lower the federal funds rate to a target range of 3.75 percent to 4 percent, a modest adjustment that policymakers said reflects caution about slowing job growth and mixed inflation signals.<\/p>\n

The decision follows an identical rate cut in September, and while markets had widely expected another reduction, the central bank\u2019s accompanying statement and Chair Jerome Powell\u2019s remarks made clear that further cuts this year are far from guaranteed.<\/p>\n

\u201cA further reduction of the policy rate in December is not a foregone conclusion \u2014 in fact, far from it,\u201d Powell told reporters during a press conference. \u201cWe remain committed to supporting maximum employment, bringing inflation sustainably to our 2 percent goal, and keeping longer-term expectations well anchored.\u201d<\/p>\n

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Powell acknowledged the potential for short-term economic strain caused by the government shutdown, now in its third week, but said the Fed does not anticipate lasting damage.<\/p>\n

\u201cThe shutdown of the federal government will weigh on economic activity while it persists,\u201d Powell said. \u201cBut these effects should reverse when the shutdown ends.\u201d<\/p>\n

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The rate cut came after weeks of public pressure from Trump, who has repeatedly attacked Powell for not lowering interest rates fast enough. The president has dubbed Powell \u201cJerome \u2018Too Late\u2019 Powell\u201d and in September suggested he could face a lawsuit over cost overruns tied to renovations of the Fed\u2019s historic headquarters.<\/p>\n

\u201cJerome \u2018Too Late\u2019 Powell must NOW lower the rate,\u201d Trump wrote on Truth Social, accusing the central bank chief of \u201cgross incompetence.\u201d<\/p>\n

Powell, appointed by Trump in 2018 and reappointed for a second term in 2022, did not address the president\u2019s comments directly. But in a subtle defense of the Fed\u2019s independence, he said the committee\u2019s decisions are \u201cbased on economic data and analysis, not political considerations.\u201d<\/p>\n

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Two Fed officials dissented from the majority decision. Fed Governor Stephen Miran, a Trump nominee, pushed for a larger 50-basis-point cut, arguing that stronger monetary stimulus was needed to counteract slowing investment and weaker consumer spending. Kansas City Fed President Jeffrey Schmid opposed any reduction, warning that continued cuts could stoke inflation and reduce the Fed\u2019s flexibility later.<\/p>\n

Financial markets reacted cautiously to the announcement. The Dow Jones Industrial Average rose nearly 200 points immediately after the decision but slipped back after Powell\u2019s comments about uncertainty surrounding December\u2019s meeting. Bond yields fell, while the dollar weakened slightly against major currencies.<\/p>\n

The rate cut also reflects the Fed\u2019s effort to stabilize conditions amid the Democrat-led shutdown, which has furloughed thousands of federal employees and delayed the release of key government data.<\/p>\n

Powell said missing economic reports will complicate decision-making ahead of the next policy meeting.<\/p>\n

\u201cWithout complete data, we have to rely more heavily on private indicators and surveys,\u201d he said.<\/p>\n

The White House, meanwhile, claimed credit for the Fed\u2019s decision, with senior officials arguing that Trump\u2019s pressure campaign forced Powell to act.<\/p>\n

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\u201cThe president has been clear from day one \u2014 lower rates mean stronger growth,\u201d said one senior administration official. \u201cHe\u2019s fighting for American workers and consumers, and the Fed is finally catching up.\u201d<\/p>\n

Powell\u2019s term as Fed chair expires in May 2026. Trump has already indicated that he intends to appoint a successor \u201cmore aligned\u201d with his economic agenda, signaling potential changes ahead for the central bank\u2019s direction. For now, Powell\u2019s message to markets was one of caution.<\/p>\n

\u201cWe will continue to make decisions meeting by meeting,\u201d he said, \u201cbased on the totality of incoming information and the outlook for the economy.\u201d<\/p>\n

Despite the modest nature of Wednesday\u2019s move, analysts said the cut could help ease pressure on credit markets and give businesses some breathing room as Washington grapples with the budget standoff.<\/p>\n

But they cautioned that if inflation remains above target, the Fed may face difficult choices in the months ahead.<\/p>\n<\/div>\n<\/article>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

\u00a0Getty Images This article may contain commentary which reflects the author’s opinion. The Federal Reserve lowered its benchmark interest rate by a quarter of a percentage point on Wednesday, its … <\/p>\n","protected":false},"author":1,"featured_media":20925,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-20924","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/cndailynews.store\/index.php?rest_route=\/wp\/v2\/posts\/20924","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cndailynews.store\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cndailynews.store\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cndailynews.store\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/cndailynews.store\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=20924"}],"version-history":[{"count":1,"href":"https:\/\/cndailynews.store\/index.php?rest_route=\/wp\/v2\/posts\/20924\/revisions"}],"predecessor-version":[{"id":20926,"href":"https:\/\/cndailynews.store\/index.php?rest_route=\/wp\/v2\/posts\/20924\/revisions\/20926"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cndailynews.store\/index.php?rest_route=\/wp\/v2\/media\/20925"}],"wp:attachment":[{"href":"https:\/\/cndailynews.store\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=20924"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cndailynews.store\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=20924"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cndailynews.store\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=20924"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}