The Federal Reserve cut its benchmark interest rate by a quarter percentage point in a highly anticipated move marking the first rate cut in nine months. Despite the cut, labor market data remain weak with low job growth and rising unemployment, particularly challenging for younger workers and recent college graduates. Chair Jerome Powell highlighted the balance of risks between inflation and employment, acknowledging no risk-free approach to avoid stagflation. The Fed faces intense political pressure from President Trump, who has publicly criticized Powell, sought steeper rate cuts, and unsuccessfully attempted to remove Fed officials. Market reactions were mixed, with initial rallies followed by declines amid uncertainty about the economy's direction.