Part 7/10:
Federal Reserve’s Historic Rate Cut Reflects Economic Uncertainty
Turning to domestic economic policy, the Federal Reserve made a rare move by slashing interest rates to the lowest levels in years. This decision was driven by concerns over the labor market's softness, even as inflation remains at around 3%. Notably, the Fed’s 12 voting members showed a lack of consensus: some argued for a larger cut, while others preferred no cut at all. Chairman Jerome Powell revealed that a clear direction for future rate changes wasn’t determined, highlighting internal uncertainties about the economy's trajectory.