US Fed makes aggressive rate cut, weeks before election

The Fed said its rate-setting committee “has gained greater confidence” that inflation was moving toward its long-term two percent target.
It added that “the risks to achieving its employment and inflation goals are roughly in balance.”
The bank has a dual mandate from Congress to act independently to tackle both inflation and employment.
Analysts were expecting the Fed to cut rates on Wednesday, as inflation eases, and the labor market continues to cool in the surprisingly resilient post-Covid economy.
But they were uncertain about the size of the move, with some anticipating a quarter of a percentage point, and others predicting the more significant half-point cut, which carries a greater risk of reigniting inflation.
The Fed’s mandate gives it the independence to set monetary policy solely on the basis of economic data.
But its decision will have political ramifications, given the importance of inflation and the cost of living to US consumers.
Americans have consistently said both are top concerns ahead of the election.
Trump has repeatedly criticized Powell, who he first appointed to run the Fed, and has suggested that its decisions are political — accusations the US central bank has strongly refuted.