The US Federal Reserve lowered interest rates for the first time this year, with Chair Jerome Powell bringing a divided committee into near-unanimous agreement despite political tension and conflicting economic signals, Bloomberg reported.

Policymakers voted 11-1 to reduce the federal funds rate by a quarter point following evidence of weakening job growth and calls from the White House for deeper cuts. Fed Governor Stephen Miran, recently sworn in after a fast-tracked Senate confirmation, cast the sole dissent, favouring a larger reduction.

The cut comes at a moment when officials face uncertainty over how tariffs will influence inflation, leaving Powell to acknowledge the growing difficulty of balancing the central bank’s dual mandate. “There are no risk-free paths now,” he told reporters after the decision.

Projections released alongside the vote showed policymakers anticipate two further reductions in 2025, one more than forecast in June. Yet divisions remain: six officials saw no need for additional cuts this year, while one member suggested rates should fall by as much as 125 basis points by December.

Economists said the consensus reached this week may be harder to replicate as inflation concerns persist. “The hawkish voices are going to get louder the lower policy rates go,” said Aditya Bhave, senior US economist at BofA Securities.

Powell’s ability to rally support carried added weight given political crosscurrents. Miran remains closely linked to former president Donald Trump, while Governor Lisa Cook only secured her participation after a court allowed her to stay in office amid a legal dispute triggered by unproven allegations.

Pressed on political interference, Powell stressed the Fed’s autonomy. “We’re strongly committed to maintaining our independence,” he said, declining to comment on whether he will leave the board after his term as chair expires in May. The White House is reviewing candidates for his successor.