Thu Sep 18 02:00:00 UTC 2025: Here’s a news article summarizing the information, along with a summary for context:
**Summary:**
The Federal Reserve, led by Chair Jerome Powell, cut its key interest rate by 0.25 percentage points, the first cut this year, placing the target range at 4%-4.25%. This decision was driven by concerns about a weakening job market, with revised data showing a less robust employment situation than previously thought. While the Fed projects two more rate cuts this year, there is internal division, with Stephen Miran, a recent Trump appointee, dissenting in favor of a larger cut. Powell addressed concerns about political pressure on the Fed, the impact of tariffs, and the housing market, cautioning that the rate cut’s effect on mortgage rates would be indirect. He also discussed the Fed’s headcount reduction and responded to criticism from the Treasury Secretary, emphasizing the central bank’s commitment to independence. The cut comes amid concerns about “stagflation” – a mix of rising prices and stagnant growth.
**News Article:**
**Fed Cuts Interest Rates Amid Job Market Concerns, Faces Internal Division**
**Washington D.C. –** In a move aimed at bolstering a slowing economy, the U.S. Federal Reserve today announced a 0.25 percentage point cut to its key interest rate, the first reduction this year. The decision, placing the target range at 4%-4.25%, was driven by growing concerns about the U.S. job market, as highlighted by recent revisions to employment data.
Speaking at a news conference, Federal Reserve Chair Jerome Powell acknowledged a shift in the balance of risks, stating that while inflation had previously been the primary concern, the focus has now shifted towards the employment side of the Fed’s mandate.
The Fed officials projected two more quarter-point rate cuts this year, signals internal divisions within the central bank. Notably, Stephen Miran, a recent appointee with ties to President Trump, dissented from the majority, advocating for a more substantial rate cut.
Powell addressed questions regarding the Fed’s independence, political pressure, and the impact of the rate cut on key sectors. While he acknowledged that tariffs have begun to put up prices on some goods, he cautioned that the impact on the housing market would be indirect and limited. “Most analysts think it would have to be pretty big change in rates to matter a lot for the housing sector,” Powell said.
The rate cut occurs amid growing concerns about stagflation – a combination of rising prices and stagnant growth – which poses a complex challenge for policymakers.
The market reaction to the announcement and press conference was muted, with initial gains giving way to a mixed performance.
Powell also discussed the Fed’s ongoing efforts to improve the accuracy of economic data and address criticism about “mission creep”, noting a 10% headcount reduction across the institution.
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