The Fed Cuts Rate—But the Story Runs Deeper
For the first time this year, the Federal Reserve has lowered its benchmark interest rate by a quarter of a percent. While that may sound modest, it’s a significant move given the Fed’s dual mandate: to promote maximum sustainable employment and maintain price stability. The challenge? These goals often pull in opposite directions.
To boost employment, the Fed typically lowers interest rates, making it cheaper for businesses to borrow and expand. But lower rates also fuel consumer spending, which can drive inflation higher. That’s the balancing act the Fed constantly navigates.
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(Original air-date: 9/19/25)
