The US Federal Reserve lowered interest rates by a quarter point on Wednesday to a range of 3.5 percent to 3.75 percent, in a nine-to-three vote that exposed divisions within the central bank, The Guardian reported. The cut marks the third reduction this year as officials seek to navigate a complex economic environment.

Fed Chair Jerome Powell acknowledged the unusual split while stressing the importance of careful deliberation. Policymakers face rising inflation, which climbed from 2.3 percent in April to 3 percent in September, alongside an uptick in unemployment to 4.4 percent from 4 percent earlier this year.

Decision-making has been further complicated by gaps in labor and price data caused by the recent government shutdown. Powell warned that upcoming economic releases will require careful evaluation, noting that previous figures may have overstated job creation.

The Fed’s actions come amid persistent pressure from the White House. President Donald Trump and his allies have criticised the central bank for not cutting rates more aggressively, despite rising inflation. Powell highlighted the challenge of balancing growth and inflation risks, pointing to tariffs and other economic shocks as key considerations.

Looking ahead, projections suggest the Fed may limit further rate reductions next year, a stance that could exacerbate tensions with the administration. Powell’s term as chair ends in May, opening the door for Trump to nominate a successor, with National Economic Council director Kevin Hassett reportedly under consideration.