The US Federal Reserve cut interest rates by 0.25 points to 3.5%–3.75%, its third cut this year, in a divided vote that highlights rising uncertainty over the economic outlook. Inflation has risen to 3% while unemployment has edged up to 4.4%, placing the Fed in a tough position. Ongoing tariffs, cuts to government spending and a recent shutdown have muddied the data, making it harder to assess the real state of the economy. Chair Jerome Powell warned of risks to jobs and inflation but signalled caution over further cuts next year. With Powell's term ending in May, President Trump is expected to nominate a new Fed chair soon. Markets were little changed, with bond yields slightly lower on expectations of a pause in policy easing