The Fed Rate Cut Is Here: Why the Next Few Months Are So Crucial | WSJ

The Federal Reserve reduced its benchmark interest rate for the first time since 2020, a key shift in its fight against inflation as concerns center around the labor market. While prices have cooled, an uptick in unemployment has reignited warnings of a recession. Regardless of the Fed’s decision about rate cuts, a lot remains at stake for the economy and Fed Chair Jerome Powell in the months ahead.

WSJ's Nick Timiraos explains why this is the Fed's make-or-break moment.

Chapters:
0:00 Adjusting policy
0:32 Labor market in focus
1:50 How rate cuts help
2:58 Fed’s split opinion
4:22 What’s next?

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