The US Federal Reserve cut interest rates on Wednesday, its first rate cut since December, as the central bank moved to stabilize a wobbling labor market even as Donald Trump’s tariffs continue to push up prices. It is “reasonable” to expect Trump’s tariffs will lead to “a one-time shift” in prices, Powell suggested. The labor market, Powell said, is experiencing a “curious kind of balance” where the supply and demand for workers have slowed. The director of the nonpartisan Congressional Budget Office told CNBC Tuesday that tariffs have already made prices increase at a faster pace than was initially anticipated. Wednesday’s rate cut comes at a tense political moment for the Federal Reserve after Trump’s months-long campaign to get the central bank to cut rates.