The Federal Reserve today made a significant decision to lower its key interest rate. Here is what you need to know.

CAROLINE WOODS: So does that mean inflation might get worse.

The consumer price index rose in August at a 2.9 percent annual rate, up from July. Jobless claims rose to the highest level since 2021, as the labor market weakens.

The Federal Reserve is expected to cut its benchmark interest rate next week as concerns about the economy intensify.

WASHINGTON, DC - SEPTEMBER 18: Federal Reserve Chairman Jerome Powell speaks during a news conference following the September meeting of the Federal Open Market Committee at the William McChesney Martin Jr. Federal Reserve Board Building on September 18 ...

While the UK’s headline rate of inflation was unchanged in August, this masked a jump in prices for a range of everyday groceries, including cheese, fish and fruit juices, together with a rise in the cost of petrol.

The Fed cut rates Wednesday, resisting Trump’s push for deeper cuts, but looming legal and political battles — including a Supreme Court case — could test its independence.

In what was expected to be a contentious Federal Reserve meeting, policymakers on Wednesday instead emerged with a nearly unanimous voice to cut interest rates by a quarter-point.