Today, the Federal Reserve cut its key interest rate by a quarter percentage point, lowering the target range to 4.00% to 4.25%. This is the first rate cut of 2025 and signals that the Fed anticipates making two more cuts before the end of the year, responding to signs of a weakening labor market and economic uncertainties. The decision was mostly unanimous, with one dissenting vote advocating for a larger cut of half a percentage point. The Fed emphasized its commitment to maximum employment and returning inflation to its 2% target while being attentive to the risks in the economy.