The Fed lowered rates by 25 basis points to a 20-month low, but economists say tariffs may throw a wrench in the rate cutting cycle.

The Federal Reserve cuts interest rates for a second straight time in an effort to keep the economy humming. But it now must contend with a new unknown: a second Trump presidency.

Since earlier in the year, labor market conditions have generally eased, and the unemployment rate has moved up but remains low,” the Fed said in a statement. “Inflation has made progress toward the Committee's 2% percent but remains somewhat elevated.