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The Fed Faces Economic Uncertainty and Political Pressure as It Decides Whether to Cut Rates

The Federal Reserve plans a 0.25% rate cut to address a weakening labor market and recession risks amid political pressure from President Trump, with inflation still above 2%, analysts say.

  • The Fed is widely expected to reduce rates for the first time this year, having held rates between 4.25% and 4.5% since December as policymakers monitored the effects of Trump's tariffs on inflation.
  • Political tensions around the Fed's rate-setting committee and central bank independence add high drama despite markets largely anticipating a rate cut, with traders monitoring Fed Chair Powell's remarks on inflation risks.
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  • 76% of the sources are Center
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Bloomberg broke the news in United States on Saturday, September 13, 2025.
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