The Federal Reserve lowered its benchmark interest rate by a quarter point to 4%-4.25%, citing “highly unusual” economic risks, particularly in the labor market. Chair Jerome Powell stated that the labor market is no longer considered “very solid.” Only one official, Stephen Miran, dissented from the decision, preferring a half-point cut.
The Fed also upgraded its median growth forecast for 2026 and predicted modestly higher inflation next year. The dollar rebounded after earlier losses, while Treasury yields rose, led by the five-year yield which increased to 3.65%. This rate adjustment comes as policymakers aim to balance economic concerns with potential future cuts.
Source: https://www.bloomberg.com/news/live-blog/2025-09-17/fed-rate-decision-and-powell-news-conference-live-updates