Fed Lowers Policy Rate by 1/4 Point
The FOMC lowered the target range for the federal funds rate by 1/4 percentage point to 4 to 4-1/4 percent. It cited the shift in the balance of risks. 12
The Committee judges that downside risks to employment have risen. Job gains have slowed, and the unemployment rate has edged up but remains low. 12
The Committee will continue reducing its holdings of Treasury securities and agency debt and agency mortgage-backed securities. 12
Chair Powell said GDP rose at a pace of around 1½ percent in the first half of the year, down from 2.5 percent last year. The unemployment rate edged up to 4.3 percent in August. 1
Median projections show GDP growth of 1.6 percent in 2025 and 1.8 percent in 2026, and an unemployment rate of 4.5 percent in 2025 and 4.4 percent in 2026. 1
Before the meeting, almost all Desk survey respondents expected a 25 basis point cut, and around half expected another at the October meeting. 1
Cited releases · 4
FedPress conferenceSep 17, 2025EN
FOMC Press Conference September 17, 2025
FedMinutesOct 8, 2025EN
Minutes of the Federal Open Market Committee, September 16–17, 2025
FedStatementSep 17, 2025EN
Federal Reserve issues FOMC statement
FedReportSep 17, 2025EN