It did it for the first time in 2025. The move is expected to have an effect on everything from mortgages to business loans.
By Catholics for Catholics
For the first time this year, the Federal Reserve cut interest rates, after a two-day policy meeting that wrapped up on Sept. 17.
The members of the Federal Open Market Committee (FOMC) voted to lower the benchmark federal funds rate by 25 basis points, setting the new target range at 4 percent to 4.25 percent, reported The Epoch Times.
The federal funds rate is a central benchmark that impacts borrowing costs throughout the U.S. economy, affecting everything from home mortgages to business loans.
“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 FOMC said in a statement. Officials said that ambiguity that is encompassing the economy’s outlook “remains elevated.”
The Federal Reserve cut interest rates by a quarter of a percentage point and indicated it will steadily lower borrowing costs for the rest of this year, as policymakers responded to signs of weakness in the job market https://t.co/TkiUbWfGyR pic.twitter.com/I5OOWkqsKG
— Reuters Business (@ReutersBiz) September 18, 2025
Jerome Powell, Federal Reserve Chairman described the quarter-point reduction as a “risk management cut,” signaling risks to the labor market, as he spoke to reporters in a news conference after the meeting.
“While the unemployment rate remains low, it has edged up, job gains have slowed, and downside risks to employment have risen at the same time, inflation has risen recently and remains somewhat elevated,” Powell said.
He said that he does not want employment conditions to loosen any further. “The labor market is softening and we don’t need it to soften anymore [and] don’t want it to,” Powell said.
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