Federal Reserve cuts interest rates amid weakening job market

TAMPA, Fla. (WFLA) — The Federal Reserve announced it has cut interest rates for the first time in months.

The Federal Open Market Committee said that as job gains slow and inflation still rises, it is working to achieve "maximum employment" and an inflation rate of 2% in the long run.

Fed officials initially held back on lowering interest rates while they examined the effects of Trump's tariffs and other economic policies.

Despite pressure from the president, it was the faltering job market that led to the FOMC's decision.

"In support of its goals and in light of the shift in the balance of risks, the Committee decided to lower the target range for the federal funds rate by 1/4 percentage point to 4 to 4‑1/4 percent (4.25%)," a release stated. "In considering additional adjustments to the target range for the federal funds rate, the Committee will carefully assess incoming data, the evolving outlook, and the balance of risks. The Committee will continue reducing its holdings of Treasury securities and agency debt and agency mortgage‑backed securities. The Committee is strongly committed to supporting maximum employment and returning inflation to its 2 percent objective."

This is the first time interest rates have been cut since last December, making it the first cut under President Donald Trump.

The Federal Reserve said the economic outlook is still uncertain as its growth has "actively moderated in the first half of the year.

Federal Reserve Chairman Jerome Powell will hold a press conference on the decision at 2:30 p.m.