【Federal Reserve Cuts Rates Again, Signaling Economic Slowdown】

📈On the 10th local time, the Federal Reserve announced a 25 basis point reduction in the federal funds rate target range to 3.50%-3.75%. This marks the sixth consecutive rate cut since September last year.
🏦In the policy statement, the Federal Reserve noted that while US economic activity remains modestly expanding, key areas are showing signs of fatigue: employment growth slowing, a slight increase in the unemployment rate, and inflation levels still high. The statement specifically emphasized that “uncertainty about the economic outlook remains high,” and that “downside risks to employment have recently increased.” This assessment became the core basis for the rate cut decision, indicating increased concerns among policymakers about weakening economic momentum and a cooling labor market.
🌟Previously, there were disagreements within the Federal Reserve regarding the impact of tariffs and whether to continue cutting rates in December, but recent deteriorating employment data ultimately unified the easing stance, raising expectations for this rate cut. Former President Trump commented that the rate cut “could be larger,” reflecting the views of some market and political forces that advocate more aggressive monetary policies to stimulate the economy.
🧣The consecutive rate-cut cycle indicates that the Federal Reserve is trying to balance inflation control with preventing economic downturns, amid growing uncertainties. The future monetary policy path will closely depend on inflation trends and market signals from the employment sector.