With the recent news about US unemployment rate hitting a new all time high and with the negative reaction that the Wall Street market showed to the stats, things are going to become even more complicated for the FED.
It can be said that the Fed is in a dilemma. Because with such high unemployment and if they don't lower interest rates, this could push the US economy into recession. Conversely, if they cut interest rates and inflation picks up again next year, things won't be much better.
US economy (like many other economies) is already in a recession. The governments just don't want to admit it already to prevent the recession from getting worse. In fact one of the reasons why Trump is pushing for a rate cut like this is the fact that US economy is in a recession and the belief is that cutting rates fixes it.
Ser? Did the unemployment rate hit a "new all time high"? There are small monthly increases, but it's FAR from hitting an all time high. Can you post the link/source of your information?
I we ignore the COVID19 recession and its unprecedented high unemployment rate due to the heavy recession of that time, this is an ATH in the past 8 years (last was around June-July 2017).
But the key point here was the negative market reactions not the rate itself.