The widely expected cut of a quarter percentage point comes amid economic pressures ranging inflation and tariffs to sluggish job growth. The US Federal Reserve , commonly known as the Fed, lowered its benchmark rate Wednesday by a quarter percentage point, the first such cut since last year. Trump has been pushing Federal Reserve Chair Jerome Powell, who acts independently of the White House, to cut interest rates for months. On Tuesday, Democrats introduced a Senate bill aimed at reinforcing the separation between the White House and the Federal Reserve, just hours after Miran was sworn in as a Fed governor. Fed officials signaled that they expect to reduce their key rate twice more this year, but just once in 2026.