Fed cuts US interest rates but appears split over the economy

The US Federal Reserve announced last night that it was cutting interest rates by a quarter point for the third time this year, as the embattled centralbank appeared split over how best to manage the US economy.

- Lauren Aratani

The Fed chair, Jerome Powell, has emphasised unity within the Federal Open Market Committee, the board of Fed leaders that sets interest rates. But the vote to lower rates to a range of 3.5% to 3.75% was divisive among a 12-person committee that tends to act in unanimity, with only nine voting for the cut.

The split highlights the overall uncertainty within the Fed as the US economy absorbs major economic shakeups, including tariffs, changes to the labour force from Trump’s immigration crackdown and massive government cuts.