Picture courtesy of Wikipedia

 

The US Federal Reserve has cut interest rates again despite limited economic data due to the lengthy government shutdown. The central bank lowered its key lending rate by 0.25 percentage points and is now targeting a range of 3.75%–4% to stimulate the sluggish labour market. This marks the second rate cut in months, as concerns about the slowdown in the job market persist.

 

The Fed's decision follows a previous rate cut in September, amid growing worries about lagging job creation. The rate cuts aim to ease borrowing costs, but they faced dissent within the Fed committee, with some members urging a steady approach or a more substantial reduction.

 

The ongoing US government shutdown has hampered the flow of crucial economic data, leaving the Fed with less clarity on the job market's status. Alternative data sources show a loss of 32,000 jobs in September, highlighting ongoing hiring challenges. Inflation data showed a 3% year-over-year rise, underscoring the Fed's focus on stabilising employment rather than inflation concerns that remain above the 2% target.

 

Looking ahead, Wall Street anticipates another rate cut at the Fed’s December meeting, with an over 80% probability. Potential changes in job market data could sway the Fed's decision as several new reports are expected before then. Meanwhile, President Trump has hinted at replacing Federal Reserve Chair Jerome Powell amid pressures for further rate reductions.

 

 

 

Key Takeaways:

 

• The Fed reduced rates by 0.25 points even with limited job data.
• The move aims to boost hiring amidst inflation that remains above targets.
• Another rate cut is expected in December, pending further job reports.

 

 

  Adapted by ASEAN Now from BBC 2025-10-30

 

 

Is the Fed now using only Trump-approved data?

6 minutes ago, JimHuaHin said:

Is the Fed now using only Trump-approved data?

The fed has their own data. 

The Fed always have rear-view-mirror data that is three months old and invariably "amended" three months further down the track by 10% or more, and then reamended again a further two months later.

 

It's a slow-motion train wreck, and always has been.

 

Claiming to not have "accurate" data due to the shutdown is somewhat of an oxymoron. 

 

 

49 minutes ago, JimHuaHin said:

Is the Fed now using only Trump-approved data?

Maybe they should dig up Joe and ask him. His data is surely accurate🙈

They're in a pickle here. They'd love to lower interest rates, but that would fuel inflation even further.

US economy is in a world of hurt and the 0.25% cut to appease Trump will not even made a small dent to the ailing economy. In normal times, a reduction in interest rates will stimulate the economy but unlikely in this dire economic condition. The persistemt inflation of 3% is tariff induced and will not go away as Trump is tone deaf to the people sufferings. The weakening of the job market, trade uncertainties and high home prices are wrecking the economy. Wall Street was muted after this announcement by the FED. Only Nasdaq rose for the tech bros lowering of loan cost for the soon coming AI bubble. All is not well for the economy and rate cuts will not help much. 

1 hour ago, Eric Loh said:

US economy is in a world of hurt and the 0.25% cut to appease Trump will not even made a small dent to the ailing economy. In normal times, a reduction in interest rates will stimulate the economy but unlikely in this dire economic condition. The persistemt inflation of 3% is tariff induced and will not go away as Trump is tone deaf to the people sufferings. The weakening of the job market, trade uncertainties and high home prices are wrecking the economy. Wall Street was muted after this announcement by the FED. Only Nasdaq rose for the tech bros lowering of loan cost for the soon coming AI bubble. All is not well for the economy and rate cuts will not help much. 

I think you hit on it with the weakening job/employment #s is the main reason….they must be going through hell trying to do their best for the economy with trumps reckless tariffs and fickle mood swings interfering with sound judgment in thease matters.what a time ehh?

winning I think not