Policymakers at the US Federal Reserve have cut their benchmark interest rate for the first time this year.
They approved a cut of 0.25 percentage points on Wednesday following their two-day policy meeting.



The Fed's target rate range is now between 4 and 4.25 percent. It is the first time policymakers have lowered rates in President Donald Trump's current term, and the decision comes after steady pressure from Trump for a cut.



Fed Chair Jerome Powell said he and his colleagues have seen concerning signs about the economy.



Powell said: "While the unemployment rate remains low, it has edged up. Job gains have slowed, and downside risks to employment have risen."



He touched on the impact of Trump's tariffs, saying that they have begun to "push up prices" but that their overall effect "remains to be seen."



The Fed's so-called dot chart outlines where policymakers think rates should be. It shows that nearly half of them now expect two more cuts this year if the reduction is set at 0.25 percentage points.
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Quiz 1:
What did the US Federal Reserve do on Wednesday?
A. Raised their benchmark interest rate
B. Lowered their benchmark interest rate for the first time this year (Correct Answer)
C. Maintained their benchmark interest rate unchanged
D. Froze their benchmark interest rate

Quiz 2:
Where is the Fed's target rate range as of Wednesday?
A. Below 4%
B. Between 4 and 4.25% (Correct Answer)
C. Above 4.25%
D. Exactly 4%

Quiz 3:
According to Jerome Powell, what is one of the concerning signs about the economy?
A. The unemployment rate has decreased significantly
B. Job gains have slowed and downside risks to employment have risen (Correct Answer)
C. The economy is growing steadily without any major concerns
D. Inflation rate has increased sharply