The Federal Reserve lowers it’s key interest rate by one quarter percent, the first rate lowering in 9 months time.
Central bank officials have failed to lower the key prime lending interest rate since December, reviewing the economic health as President Donald Trump’s aggressive policies, including tariffs on most of the world’s nations…were rolled out, adjusted, and presented again.
Mounting signs of labor market weakness is one key reason the Fed would lower borrowing costs now; job growth this summer was weak, with employers adding about 29,000 jobs in the three months ending in August. There are now more unemployed people looking for work than there are job openings. New applications for jobless benefits in the week ending September 6th rose to the highest level in nearly four years, and in August, those unemployed for more than 26 weeks reached their highest levels seen since November of 2021.
A preliminary benchmark revision to employment data for the year ending in March released last week showed the national labor market was on even shakier ground that previously believed heading into summer
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