The Federal Reserve cut interest rates by 25 basis points as expected, but two dissenting votes indicated growing disagreement.

At 2:00 AM Beijing time on Thursday, the Federal Reserve cut interest rates by 25 basis points as expected, lowering the target range for the benchmark interest rate to 3.75%-4.00%, the lowest level in three years. This is the Fed's second consecutive rate cut at its meeting, aimed at preventing the recent slowdown in hiring from developing into a more serious economic problem. Two policymakers voted against the decision: Fed Governor Milan again advocated for a larger reduction in borrowing costs, supporting a 50 basis point cut, while Kansas City Fed President Schmid argued that rates should not be cut while inflation remains persistent. Typically, the economic reports released by the Fed between meetings help bridge internal divisions. However, the lack of new labor market indicators this time deprived officials of crucial information that could have been used to resolve their differences.