"The labor market is really cooling off," said Fed Chair Jerome Powell, who's been under unprecedented pressure to slash rates.

Interest rates for credit cards and some other loans will head down, now that the Fed has cut short-term interest rates for the first time in 2025.

The Federal Reserve is cutting its benchmark interest rate as the U.S. economy faces headwinds, including a faltering labor market.

The Federal Reserve has cut its benchmark interest rate for the first time in nine months. Since the last cut, progress on inflation has slowed while the labor market has cooled and Wall Street has rallied.

But with the market already booming and the Federal Reserve under presidential pressure, a new cycle of lower rates could pour fuel onto a fire, our columnist says.

(Reuters) -A 60/20/20 portfolio strategy that includes 20% gold is a more resilient inflation hedge at a time when U.S. equities are offering historically low upside over Treasuries and investors are demanding higher yields for long-term bonds, Morgan Stanley Chief Investment Officer Mike Wilson said on Tuesday.

The euro is climbing back toward $1.20 as investors bet the common currency will benefit as the Federal Reserve and European Central Bank set interest rates on increasingly divergent paths.