WASHINGTON, D.C.—The Federal Reserve Board on Wednesday, September 17, cut its benchmark overnight lending rate by 0.25 percentage points to a range of 4%-4.25%, in an 11-1 vote. The move, driven by growing U.S. labor market concerns, also signals two additional cuts before year-end.

“The Committee decided to lower the target range for the federal funds rate by 1/4 percentage point to 4 to 4‑1/4 percent,” the Feds released in a statement.

The Federal Reserve notes that U.S. economic growth slowed in the first half of 2025, with job gains moderating, unemployment ticking up, and inflation rising to elevated levels. Amid heightened uncertainty and increased downside risks to employment, the Board lowered the rate to support maximum employment and 2% inflation goals.

Voting for the monetar

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