Last month, the Federal Reserve’s (Fed) policy-setting body decided to cut interest rates by 25 basis points to 4.00%-4.25%, easing monetary policy for the first time since December 2024. Fed Chair Jerome Powell described the rate cut as a “risk management” move amid the U.S. labor market showing signs of weakness. The widely expected rate cut came on the heels of data showing the unemployment rate rising slightly to 4.3% in August 2025 from 4.2% in July (see our related article U-3 unemployment rate). To put this in perspective, between May 2024 and July 2025, the unemployment rate ranged between 4% and 4.2%, after ... (full story)