Fed Cuts Rates As Tariffs Bite | Powell Warns Of Jobs Risk And Inflation Uncertainty

The Federal Reserve has cut interest rates for the first time since December, lowering its benchmark lending rate to a range of 4.0%–4.25%. Fed Chair Jerome Powell called it a “risk management cut,” signalling concern about America’s slowing labour market and the uncertain impact of President Trump’s tariffs. While Powell noted that tariffs are slowly pushing up prices, he also warned that weak hiring and rising unemployment risks demand attention. The Fed is projecting two more cuts this year but insists it will move “meeting by meeting.” What does this mean for jobs, inflation, and consumers? Watch this video for the latest insights from Powell’s press conference and how tariffs complicate the Fed’s balancing act.