Federal Reserve cuts interest rates amid Trump pressure

The Federal Reserve on Wednesday cut interest rates for the first time this year, with policymakers opting for an expected quarter-point cut to the Fed’s benchmark rate.

The announcement comes as President Donald Trump has been pushing for rate cuts while attempting to assert more control over the historically independent central bank. He has sought to fire Biden appointee Lisa Cook from the Federal Reserve Board of Governors, a move that an appeals court temporarily blocked Monday night but could ultimately be resolved soon at the Supreme Court. The Trump administration had argued for kicking her off the board ahead of the Federal Open Market Committee’s two-day meeting that started Tuesday, at which rates and other important matters were discussed.

The Republican-led Senate just this week confirmed a new board governor appointed by Trump, Stephen Miran, who has said he would not resign from his economic adviser position in the Trump White House. Miran replaced Biden appointee Adriana Kugler, who abruptly resigned last month before her term’s expiration in January.

Miran disagreed with Wednesday’s action, as he preferred a larger cut.

The New York Times previously reported that the projected quarter-point rate cut “won’t have a significant effect on consumers’ financial lives, but it may provide a tiny bit of relief for people carrying credit card debt, while savers may see slightly less generous yields.”

This is a developing story. Check back for updates.