- The U.S. Federal Reserve cut its benchmark interest rate by 0.25 percentage points to the 4.0–4.25% range, its first cut since last year.
- The move reflects growing concern over a weakening labor market as hiring has nearly ground to a halt in recent months.
- Inflation remains slightly above the Fed’s 2% target at 2.9% in August, up from 2.7% in July.
- New Fed Governor Stephen Miran, appointed by U.S. President Donald Trump, dissented, favoring a larger 0.5% cut and signaling support for steeper reductions ahead.
- Fed officials signaled two additional cuts likely in 2025, with only one further reduction projected in 2026.
US Federal Reserve Cuts Interest Rate for the First Time in 2025
