Fed's First Rate Cut Of 2025 To Powell Speaking On Jobs, Tariffs, Inflation — Key Highlights
The US Federal Reserve has trimmed its benchmark lending rate by 25 basis points, with only one dissenting vote.
KEY HIGHLIGHTS
US Fed Meet Live: Key Highlights
The Fed resumes its rate-cut cycle after nine months, lowering benchmark rates by 25 bps to 4%–4.25%. Median projections suggest another 50 bps cut in 2025.
Policy is moving towards neutral, balancing inflation risks and growth concerns.
Projections include funds rate of 3% long-run, Core PCE inflation of 3.1% in 2025, and unemployment rate at 4.5%.
In the labour segment, hiring has slowed, labor demand softening with much of the slowdown tied to a shrinking labour force.
Inflation has risen recently and remains somewhat elevated.
Spot gold briefly hit a record $3,707.57 per ounce after the Fed decision.
With this, we end the coverage of the US Federal Reserve's meeting. Goodnight, readers!
(This live blog has ended).
US Fed Meet Live: Impact Of Tariffs
While Powell said it is "certainly possible" that tariffs are impacting the labour market, he believes its "impact on inflation will be short-lived".
Read the whole story here.
US Fed Meet Live: Powell's Press Conference Ends
US Fed Meet Live: Gold Hits Record High
Spot gold briefly hit a fresh record high of $3,707.57 an ounce following the Federal Reserve's latest policy decision.
Read the whole story here.
Jerome Powell Fed Rate Cut Live: On Inflation and Employment
On inflation and employment, Jerome Powell said, "In the near term, risks to inflation are tilted to the upside and risks to employment to the downside, a challenging situation," for monetary policymakers.
He said "labour demand has softened and the recent pace of job creation appears to be running below the break-even rate needed to hold the unemployment rate constant," adding that "the marked slowing in both the supply of and demand for workers is unusual."
