Fed cuts interest rates for second time this year amid economic uncertainty

Central bank sets rates at range between 3.75% and 4% amid turbulence from government shutdown and Trump's tariffs

The US Federal Reserve cut interest rates on Wednesday, the second rate cut this year amid economic turbulence from the federal government shutdown and Donald Trump's tariffs.

The decision to cut the Fed's benchmark interest rate by a quarter point to a range of 3.75% to 4% comes at an extraordinary moment for the central bank. The Fed has been under immense pressure from Donald Trump to cut rates despite persistent inflation and no longer has access to key data thanks to the shutdown.