A split Fed cuts interest rates but signals it's likely to pause

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A decision to hold off on further rate reductions risks drawing more criticism from the president.

Fed Chair Jerome Powell's term atop the central bank ends in May, and the president told POLITICO that his future Fed chair should cut rates immediately. | Manuel Balce Ceneta/AP

A divided Federal Reserve voted to lower interest rates again on Wednesday, but officials signaled that another cut won’t be immediate, ratcheting up tensions with President Donald Trump.

The decision to reduce rates by a quarter point was hotly debated within the central bank, but Fed Chair Jerome Powell was able to corral his rate-setting committee into moving forward with one more cut, the third time the central bank has lowered borrowing costs this year. The central bank’s benchmark rate is now at a range of 3.5 percent to 3.75 percent, the lowest in three years.

A split Fed cuts interest rates but signals it's likely to pause

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