Fed Reserve cuts interest rates but cautions over stalling job market

The Federal Reserve has made its first interest rate cut since 2024, reducing the federal funds rate by a quarter-percentage point. This move is aimed at bolstering the economy amid signs of a slowing job market. While the rate cut is a positive step, the Fed has cautioned that the economic outlook remains uncertain. The central bank acknowledged that the labor market has shown signs of stalling, with job growth slowing in recent months. The rate reduction is seen as a proactive measure to help sustain the economic expansion and counter the potential risks posed by global trade tensions and a slowing global economy. The Fed's decision was widely expected by financial markets, and the move is intended to provide a degree of insurance against the economy's weakening momentum. However, the central bank has indicated that further rate cuts may be necessary, depending on the evolving economic conditions.