Federal Reserve Chair Jerome Powell cut interest rates by 0.25% signaling cautious stimulus amid a cooling labor market and persistent inflation. Powell highlighted the difficult balance in managing stagflation risks and linked the labor supply decline to Trump-era immigration restrictions. Despite rate cuts, economic uncertainty remains high with concerns about a potential recession. Meanwhile, President Trump has criticized the Fed's leadership and demanded larger cuts, but his efforts have faced resistance. Powell also noted uneven AI-driven economic growth benefiting wealthier households, underscoring complex macroeconomic dynamics impacting higher education budgets and labor supply.