Fed's Triple Rate Cut Stirs Economic Debate

The Federal Reserve has cut its key interest rate for the third consecutive time but signaled a pause in future rate cuts. Chair Jerome Powell indicated a wait-and-see approach, amidst dissent within the Fed and criticism from President Trump. The move impacted stock markets positively.

The Federal Reserve on Wednesday cut its key interest rate by a quarter-point, marking the third consecutive cut but hinting at a pause for future rate reductions. Chair Jerome Powell emphasized evaluating economic health before further rate changes, signaling caution in the coming months.

Despite this, internal dissent was notable, with three Fed officials opposing the move and showing a divide not seen in six years. President Trump criticized the rate cut as insufficient, suggesting a preference for a more aggressive approach with potential changes in Fed leadership.

The stock market responded positively, with the S&P 500 nearing record highs. Powell remained optimistic about economic growth, citing steady consumer spending and investment in AI. Nevertheless, inflation remains a concern amid ongoing debates within the Federal Reserve on future rate strategies.