Finally: Fed Cuts Rates by a Quarter Percent
John Carney17 Sep 20256
5:04
The Federal Reserve cut interest rates by a quarter percentage point on Wednesday, lowering the benchmark federal funds rate to a range between 4.00 percent and 4.25 percent in response to weakening labor market conditions and following months of pressure for lower rates from President Trump, capping one of the most politically charged meetings in the central bank’s recent history.
“Recent indicators suggest that growth of economic activity moderated in the first half of the year. Job gains have slowed, and the unemployment rate has edged up but remains low. Inflation has moved up and remains somewhat elevated,” the Fed said in a statement released at the conclusion of its two-day monetary policy meeting.
The decision marked the Fed’s first rate reduction since December 2024 and represented a significant policy shift after officials held rates steady throughout the first half of 2025 due to concerns about tariff-induced inflation that never materialized.
The vote was not unanimous, with Fed Governor Stephen Miran dissenting from the majority decision, preferring a one half a point cut.
Payroll gains have averaged just 29,000 over the three months ending in August, down sharply from earlier estimates and raising concerns about a potential economic downturn, sparking concerns that the Fed’s restrictive policy stance was putting economic growth at risk. Several of the most interest rate-sensitive sectors of the economy, most notably housing, have been in a slump for months.
The meeting unfolded amid extraordinary political drama, with newly confirmed Fed Governor Stephen Miran taking his seat at the policy table for the first time after being sworn in Tuesday morning. Miran, who is on unpaid leave as chair of the White House Council of Economic Advisers, is widely seen as representing President Trump’s latest attempt to break the groupthink consensus at the Fed that critics say has led the central bank to repeatedly miscalibrate monetary policy.
https://www.breitbart.com/economy/2025/09/17/fed-cuts-september-2025/
