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?
News Explainers
Some days the high-speed news cycle can bring more questions than answers. WSJ’s news explainers break down the day’s biggest stories into bite-size pieces to help you make sense of the news.
#Fed #Inflation #WSJ
