The move marks the Fed’s first rate cut since December, with officials also signaling plans for two more reductions later this year.
U.S. Federal Reserve Chair Jerome Powell speaks at a press conference in Washington, D.C., on September 17, 2025, after the Federal Open Market Committee released its statement on interest rate policy. | Photo Credit: Reuters
On Wednesday (September 17, 2025), the Federal Reserve lowered its key interest rate by a quarter point and indicated two more cuts are likely this year, reflecting rising concerns over the nation’s labor market.
This marks the Fed’s first rate cut since December, bringing its short-term rate down to about 4.1% from 4.3%. Until now, officials led by Chair Jerome Powell had kept rates steady while assessing the effects of tariffs, stricter immigration enforcement, and other Trump administration policies on inflation and the broader economy.
Harsh Kumar