The US Federal Reserve has cut interest rates for the first time this year, lowering its benchmark policy rate by 25 basis points to 4%-4.25% range. The move marks the beginning of a monetary easing cycle aimed at supporting a slowing labor market, even as inflation remains elevated. Fed said for further tweaks to the interest rates, the committee will assess incoming data, evolving outlook, and the balance of risks. Federal Reserve Chair Jerome Powell said on Wednesday that while a slim majority of Fed officials foresee at least two more rate cuts this year, such moves remain conditional on data and evolving risks. “We are not on a preset path,” he emphasized.
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