The Federal Reserve reduced its benchmark interest rate for the first time since 2020, a key shift in its fight against inflation as concerns center around the labor market. While prices have cooled, an uptick in unemployment has reignited warnings of a recession. Regardless of the Fed’s decision about rate cuts, a lot remains at stake for the economy and Fed Chair Jerome Powell in the months ahead.
WSJ's Nick Timiraos explains why this is the Fed's make-or-break moment.
Chapters:
0:00 Adjusting policy
0:32 Labor market in focus
1:50 How rate cuts help
2:58 Fed’s split opinion
4:22 What’s next?
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