Why the Fed cuts rates again despite stubborn inflation

Breakdown

• The Federal Reserve cut interest rates for the second time in a row despite inflation remaining above target.
• The main reason for the rate cut is growing weakness in the labor market, highlighted by recent layoffs at major companies. 17s
• The benchmark interest rate is now between 3.75% and 4%, the lowest since November 2022. 1m 25s
• The quarter-point rate cut is expected to have only a modest effect on consumer borrowing costs. 1m 38s
• The Federal Reserve has not committed to another rate cut in its next meeting, leading to market uncertainty. 2m 12s