In its September meeting, the Federal Reserve (Fed) cut its benchmark interest rate by 0.25 points for the first time this year. Most members of the Committee deemed it appropriate to further ease monetary policy for the rest of the year due to pressure in the labor market. The decision was not unanimous: Kansas City Fed President Jeffrey Schmid voted to keep the rate unchanged, while Governor Stephen Miran voted to cut the rate by 50 basis points. Despite this, the Fed reaffirmed its commitment to its dual mandate of maximum employment and stable prices at 2%. The Fed's decision opens the door for the Bank of Mexico (Banxico) to proceed with its own rate-cutting cycle, potentially easing the cost of credit and supporting economic activity.
