📉 Another Rate Cut — While Inflation Remains High The Federal Reserve announced its third consecutive interest rate cut today, dropping the federal funds rate by 25 basis points to a new range of 3.5% to 3.75%. This move—coming even as inflation remains above the Fed’s 2% target—reveals growing concern over the weakening labor market and the uncertainty gripping the broader economy. Chair Jerome Powell tried to downplay the risk, calling this “further normalization” of policy. But make no mistake: when you’re cutting rates while inflation is still hot, you are signaling that underlying economic stability is breaking down. “Risks to inflation are tilted to the upside and risks to employment to the downside – a challenging situation,” Powell said.…
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