Fed set for second rate cut despite shutdown chaos
The Federal Reserve plans to reduce interest rates by a quarter point on Wednesday, bringing the benchmark range down to 3.75 percent to 4.00 percent. This marks the second rate reduction of the year, though officials face challenges from a government shutdown that has halted most economic data releases for weeks.
The central bank must balance two competing pressures. Consumer prices rose 3.0 percent through September, remaining above the Fed’s 2 percent target. At the same time, job growth has weakened significantly, with only 22,000 positions added in August despite unemployment holding steady at 4.3 percent.
Political tensions have intensified around the institution. President Donald Trump has publicly criticized Fed Chair Jerome Powell, who leaves office next year. The administration also challenged Governor Lisa Cook’s appointment, with the Supreme Court scheduled to hear arguments in January.
