The Federal Reserve cut interest rates for the first time this year, in a move driven by mounting evidence of a weakening job market that carries political risks for President Donald Trump.
After months of disappointing economic data, the central bank lowered its benchmark rate by a quarter of a percent on Wednesday—less than what the administration had hoped for.
“Recent indicators suggest that growth of economic activity moderated in the first half of the year. Job gains have slowed, and the unemployment rate has edged up but remains low. Inflation has moved up and remains somewhat elevated,” the Federal Reserve said in a statement.
The move puts the target range for the Fed’s main lending rate at 4 percent – 4.25 per cent, with two more cuts likely this year.
This comes after the latest annual revisions from the Bureau of Statistics showed that employers created 911,000 fewer jobs for the year to March than previously suggested, in a blow to Trump’s claim that the U.S. has the “hottest” economy in the world.
This story will be updated.
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