Today’s Federal Open Market Committee (FOMC) decision in the U.S.
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📰 FOMC Meeting Update
The Federal Reserve just lowered its benchmark interest rate by 0.25 percentage points to the range 4.00 % – 4.25 %.
Here’s what it means in simple terms:
✅ Why they cut
Job growth is slowing, and the unemployment rate has edged up — so the Fed says the downside risk to employment has risen.
Inflation remains “somewhat elevated” (above their 2 % target), so they’re walking a tightrope: supporting jobs while still watching prices.
📌 What’s next
The Fed signalled there could be more rate cuts this year, but only if the incoming data supports it. They’re taking a meeting-by-meeting approach.
This doesn’t mean cheaper loans and mortgages overnight—they’ll depend on how the economy behaves.
🎯 Why this matters
Lower rates → cheaper borrowing for businesses & consumers → potential boost for growth.
But with inflation still above target, the Fed can’t ease too quickly or too much without risking higher prices.
For global markets (including PK/Pakistan), U.S. rate changes influence currencies, capital flows & emerging-market conditions.
