Fed Cuts Rates Amid Data “Fog” – Stocks Hit Record Highs as More Easing Likely
The Federal Reserve cut its key interest rate by 0.25% on October 29, setting the target range at 3.75–4.00%, its second reduction this year. The move came despite missing economic data due to a prolonged government shutdown. U.S. stocks hit record highs ahead of the decision. Fed Chair Jerome Powell warned of a softer labor market and rising risks to employment.