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On October 29, 2025, the U.S. Federal Reserve executed its second consecutive interest rate cut, lowering the federal funds rate by 25 basis points to a range of 3.75% to 4%. This move, widely anticipated by analysts and traders, was aimed at bolstering a softening labour market and supporting economic growth amid persistent inflation and political gridlock. The decision came after a two-day Federal Open Market Committee (FOMC) meeting, where 10 out of 12 members voted in favour of the cut. Notably, dissenting votes came from Fed Governor Stephen Miran who advocated for a larger half-point cut and Kansas City Fed President Jeffrey Schmid, who preferred no cut at all. Their opposing stances underscore the deep divisions within the Fed, reflecting the complexity of the current economic landscape.
Why the Fed Cut Rates Again
The rationale behind the rate cut was multifaceted. The U.S. economy is grappling with elevated inflation,…
