The US Federal Reserve cut interest rates to 4-4.25%, its first reduction since December, aiming to stabilize a weakening labor market. Fed Chair Jerome Powell cited slowing job growth and rising unemployment risks, while acknowledging increased inflation partly due to Trump's tariffs. The decision, however, is unlikely to satisfy Trump, who called for a larger cut. A recent dispute involved Trump's attempt to fire Fed Governor Lisa Cook, blocked by courts. A new Fed governor, Stephen Miran, dissented, preferring a larger rate cut. Economists are concerned about the potential for stagflation, as unemployment and inflation rise simultaneously.

Prepared by Christopher Adams and reviewed by editorial team.