• The US Federal Reserve has cut interest rates by 25 basis points to 4.0-4.25%.
• This is the first rate cut in response to weaker job market conditions.
• Two more reductions are anticipated in upcoming meetings this year.
• Trump's pressures have influenced the Fed's decision-making on rates.
• New forecasts show inflation at 3%, above the target 2% rate.

The US Federal Reserve has announced a cut in interest rates, lowering the benchmark lending rate by 25 basis points to a range between 4.0 percent and 4.25 percent. This decision, the first of its kind this year, is largely attributed to concerns over slowing job gains and rising risks to employment, as the Federal Open Market Committee (FOMC) navigates competing pressures under President Donald Trump's administration, according to scmp and channelnewsasia.

Newly appointed Governor Stephen Miran was the only member of the FOMC to dissent, advocating for a more substantial cut of 50 basis points. The remaining members supported the decision, with the central bank signaling that further rate cuts are likely at the next two policy meetings scheduled for later this year. This stance illustrates a shift in focus from inflation risks due to trade policies to concerns regarding economic growth and job stability, according to bangkokpost and indiatimes.

In its policy statement, the Fed acknowledged that "the committee is attentive to the risks to both sides of its dual mandate" and noted that "downside risks to employment have risen." New projections from the Fed forecast that inflation will end the year at 3%, significantly above its target of 2%, while the unemployment rate is anticipated to remain at 4.5%. The projection for economic growth has seen a slight increase to 1.6% from 1.4%, reflecting an overall cautious optimism among policymakers, according to channelnewsasia and scmp.

Investors reacted positively to the rate cut, with stock prices rising briefly before becoming volatile. The likelihood of additional cuts in the near future has also been bolstered by prevailing economic conditions as the market anticipates a sustained effort by the Fed to support the labor market amidst softening economic indicators, according to bangkokpost and channelnewsasia.