Federal Reserve Chair Jerome Powell said the central bank will cut interest rates by a quarter point, following rising inflation and slow job growth.

A fter a lengthy pause, the Federal Reserve on Sept. 17 announced a quarter percentage point cut to its benchmark interest rate. Economists say it is likely the first in a series of reductions that should make borrowing more accessible for consumers.

Chair Jerome Powell and other officials had held rates steady this year while assessing the impact of tariffs, immigration policies.

In what was expected to be a contentious Federal Reserve meeting, policymakers on Wednesday instead emerged with a nearly unanimous voice to cut interest rates by a quarter-point.

The Fed trimmed its benchmark interest rate by a quarter percentage point on Wednesday, its first reduction of 2025.

President Donald Trump has asked the Supreme Court to allow him to fire Federal Reserve board member Lisa Cook, setting up a test of the president’s ability to take control of the powerful interest-rate setting body.

The Federal Reserve cut interest rates Wednesday, moving to bolster a weakening job market even as inflation remains elevated. NewsNation’s Alicia Nieves reports on the markets' reaction. #FederalRese

Federal Reserve Chair Jerome Powell spoke to reporters after the central bank cut interest rates by a quarter point, following a two-day monetary policy meeting.