Fed Reserve cuts interest rates but cautions over stalling job market

It’s finally happening.

After months of economic debate and mounting attacks from US President Donald Trump, the US central bank cut interest rates on Wednesday.

The Federal Reserve said it was lowering the target for its key lending rate by 0.25 percentage points. That will put it in a range of 4% to 4.25% – the lowest level since late 2022.

The move – the bank’s first rate cut since last December – is expected to kick off a series of additional reductions in the months ahead, which should help bring down borrowing costs across the US.