The Fed lowered interest rates by a quarter percentage point Wednesday in an effort to cushion the sagging job market. The move comes as policymakers face growing pressure from President Trump.

The federal funds rate, set by the Federal Reserve, is the rate at which banks borrow and lend to one another. While the rates that consumers pay to borrow money aren’t directly linked to this rate, shifts in Fed policy affect what people pay for credit cards,

The Federal Reserve is cutting its benchmark interest rate as the U.S. economy faces headwinds, including a faltering labor market.

The Fed is turning its focus to the labor market. The attention matters, and it might not just be about the size of Wednesday’s rate cut. The Federal Reserve’s first interest-rate cut of the year isn’t a victory lap over vanquished inflation.

The Federal Reserve cut interest rates by a quarter of a percentage point on Wednesday and indicated it will steadily lower borrowing costs for the rest of this year, as policymakers responded to concerns about weakness in the job market in a move that won support from most of President Donald Trump's central bank appointees.

With the U.S. economy facing headwinds, the Federal Reserve faces pressure to trim interest rates this week for the first time since December 2024.

The U.S. Federal Reserve announced a quarter percentage point cut in interest rates, it's first since December, amid a softening of the U.S. labor market. The move was expected. The more pressing question for markets was how many additional cuts to expect.

The Federal Reserve cut interest rates Wednesday for the first time this year as the central bank attempts to ease pressure on the weakening U.S. job market. The Federal Open Market Committee (FOMC) — the panel of Fed officials responsible for setting borrowing costs — cut its baseline interest rate to a range between