Federal Reserve officials lowered their benchmark interest rate by a quarter percentage point and penciled in two more reductions this year following months of intense pressure from the White House to slash borrowing costs. Chair Jerome Powell pointed to growing signs of weakness in the labor market to explain why officials decided it was time to cut rates after holding them steady since December amid concerns over tariff-driven inflation. “Labor demand has softened, and the recent pace of job creation appears to be running below the break-even rate needed to hold the unemployment rate constant,” Powell told reporters in his post-meeting press conference. He added, “I can no longer say” the labor market is “very solid.” —Natasha Solo-Lyons

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Trump’s $15 billion NY Times lawsuit also has a serious intent, Tim O’Brien writes for Bloomberg Opinion. The president wants to tear down another vital institution while unwinding legal protections for the media. Multibillion-dollar lawsuits tend to have chilling effects on free speech and responsible and necessary reporting, particularly when they’re launched from the White House.

Bank of America will increase its minimum wage to $25 an hour next month, the final step in a long-term goal the company set several years ago. The move bumps pay up from $24, a level put in place last October, the company said Tuesday. It translates to a full-time annualized salary of more than $50,000 and applies to all full-time and part-time hourly positions in the US. The change continues a series of hikes lifting the firm’s base pay from $15 in 2017.

US mortgage rates fell last week to the lowest level in nearly a year, spurring a surge of refinancing. The contract rate on a 30-year mortgage fell 10 basis points to 6.39% in the week ended Sept. 12, according to Mortgage Bankers Association data released Wednesday. The group’s measure of refinancing jumped to the highest level since early 2022, and the index of home-purchase applications also moved higher. The third-straight weekly decline in borrowing costs offers fresh fuel for a housing market that has long been struggling to gain momentum.

The creditworthiness of Gen Z borrowers’ took the biggest hit of any age group this year, helping pull overall FICO scores lower in the worst year for US consumer credit quality since the global financial crisis roiled the world’s economy. The average score slipped to 715 in April from 717 a year earlier, marking the second consecutive year-over-year drop, according to a report released Tuesday by Fair Isaac. The average FICO score dropped three points to 687 in 2009.

Ray Dalio has taken over running investments at his family office as he finalized his long-discussed plans to exit the hedge fund behind his multibillion-dollar fortune. The Bridgewater Associates founder said in a statement he’s assumed the role of Dalio Family Office’s de-facto chief investment officer, doing so following the unexpected departure last year of a former Wall Street executive who had filled that job.

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