Summary
The Federal Reserve cut rates by 50 basis points — larger than the 25bp most economists expected — signalling confidence that inflation was beaten and concern about the labour market's softening. The decision was described by economists as 'the pivot' — the beginning of the rate-cutting era.
The rate decision, the dissenting vote from one governor, and the immediate market and economic implications.
Analysis of the economic data and Fed reasoning behind the larger-than-expected first cut.
Liberation Day tariffs ignite stagflation trap
US–China Strategic Competition
Ukraine war triggers energy supply shock
Russia–Ukraine War
Middle East escalation raises energy risk
Israel–Gaza–Iran War
Rate hike pain drives far-right electoral surge
Western Democratic Fragility