Fed Cuts Rates As Shutdown Hides Full Jobs Picture

The Federal Reserve cut interest rates by a quarter point on Wednesday, marking its second rate reduction this year as it seeks to prevent a spike in unemployment amid slowing job growth. The move lowers the benchmark lending rate to between 3.75% and 4%, the lowest level in three years.

US Federal Reserve cuts rate by 25 bps to 3.75-4% target range. #FOMC

Chairman #JeromePowell addresses media after the announcement.#NDTVProfitLive

Read LIVE updates: https://t.co/mxnHlhdGML https://t.co/0EyPlNOUvi

— NDTV Profit (@NDTVProfitIndia) October 29, 2025

Fed officials made the decision despite a lack of key employment data caused by the ongoing U.S. government shutdown — the first time in history the Fed has set policy without a full month of federal labor statistics.

LIVE | FOMC Meet Outcome - US Fed cuts policy rate by 25 bps#WATCH Chairperson Jerome Powell speak about the key factors at play@federalreserve #FOMC #JeromePowell #FederalReserve #USFed https://t.co/WntmFsaopB

— ET NOW (@ETNOWlive) October 29, 2025

Chair Jerome Powell said weak hiring and rising layoffs, including at major firms such as Amazon and Target, were driving the Fed’s cautious approach.

The decision revealed internal divisions, with one governor calling for a deeper cut and another opposing any change. Inflation remains uncertain as Trump’s tariff policies continue to reshape trade dynamics with China.

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