Fed Lowers Rates by Quarter-Point, Signals More Cuts Are Likely
https://www.wsj.com/economy/central-banking/fed-cuts-rates-by-quarter-point-and-signals-more-are-likely-dba38600
Concerns about a job-market slowdown are overriding jitters about inflation in justifying a pivot towards a shallow sequence of rate reductions.
https://www.wsj.com/economy/central-banking/fed-cuts-rates-by-quarter-point-and-signals-more-are-likely-dba38600
Concerns about a job-market slowdown are overriding jitters about inflation in justifying a pivot towards a shallow sequence of rate reductions.
America’s monetary policy risks getting too loose
https://www.economist.com/leaders/2025/09/17/americas-monetary-policy-risks-getting-too-loose
Jobs growth is probably weak because of low migration, not a cold economy.
https://www.economist.com/leaders/2025/09/17/americas-monetary-policy-risks-getting-too-loose
Jobs growth is probably weak because of low migration, not a cold economy.
Heightened uncertainties feed Fed inconsistencies
https://www.reuters.com/markets/us/heightened-uncertainties-feed-fed-inconsistencies-2025-09-18
https://www.reuters.com/markets/us/heightened-uncertainties-feed-fed-inconsistencies-2025-09-18
The Fed Rolls Back Recession Risk
https://www.wsj.com/economy/central-banking/the-fed-rolls-back-recession-risk-4e812cc3
The central bank’s quarter-point rate cut has eliminated the U.S. economy’s worst-case scenarios.
https://www.wsj.com/economy/central-banking/the-fed-rolls-back-recession-risk-4e812cc3
The central bank’s quarter-point rate cut has eliminated the U.S. economy’s worst-case scenarios.
Why the Fed Rate Cut Won’t Ease the Government’s Debt Problem
https://www.wsj.com/economy/central-banking/fed-reserve-rate-cut-national-debt-interest-157d3ff1
The move will likely reduce U.S. borrowing costs for short-term Treasury bills, but annual interest expense won’t shrink much.
https://www.wsj.com/economy/central-banking/fed-reserve-rate-cut-national-debt-interest-157d3ff1
The move will likely reduce U.S. borrowing costs for short-term Treasury bills, but annual interest expense won’t shrink much.
https://www.nytimes.com/2025/09/18/business/stocks-fed-rate-cut.html
But with the market already booming and the Federal Reserve under presidential pressure, a new cycle of lower rates could pour fuel onto a fire, our columnist says.
The Fed’s Wrong Move
https://www.project-syndicate.org/commentary/fed-interest-rate-cuts-will-have-to-be-reversed-in-2026-by-michael-r-strain-2025-09
The US Federal Reserve intends to push its policy interest rate down to 3.6% this year, which is likely to tighten an already-strong labor market and could cause inflation to accelerate at a faster rate. In that event, the Fed would have cut rates this year, only to have to reverse course in 2026.
https://www.project-syndicate.org/commentary/fed-interest-rate-cuts-will-have-to-be-reversed-in-2026-by-michael-r-strain-2025-09
The US Federal Reserve intends to push its policy interest rate down to 3.6% this year, which is likely to tighten an already-strong labor market and could cause inflation to accelerate at a faster rate. In that event, the Fed would have cut rates this year, only to have to reverse course in 2026.
FOMC Statement (September 17, 2025):
https://www.federalreserve.gov/newsevents/pressreleases/monetary20250917a.htm
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 Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run. Uncertainty about the economic outlook remains elevated. The Committee is attentive to the risks to both sides of its dual mandate and judges that downside risks to employment have risen.
In support of its goals and in light of the shift in the balance of risks, 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. In considering additional adjustments to the target range for the federal funds rate, the Committee will carefully assess incoming data, the evolving outlook, and the balance of risks. The Committee will continue reducing its holdings of Treasury securities and agency debt and agency mortgage‑backed securities. The Committee is strongly committed to supporting maximum employment and returning inflation to its 2 percent objective.
In assessing the appropriate stance of monetary policy, the Committee will continue to monitor the implications of incoming information for the economic outlook. The Committee would be prepared to adjust the stance of monetary policy as appropriate if risks emerge that could impede the attainment of the Committee's goals. The Committee's assessments will take into account a wide range of information, including readings on labor market conditions, inflation pressures and inflation expectations, and financial and international developments.
Voting for the monetary policy action were Jerome H. Powell, Chair; John C. Williams, Vice Chair; Michael S. Barr; Michelle W. Bowman; Susan M. Collins; Lisa D. Cook; Austan D. Goolsbee; Philip N. Jefferson; Alberto G. Musalem; Jeffrey R. Schmid; and Christopher J. Waller. Voting against this action was Stephen I. Miran, who preferred to lower the target range for the federal funds rate by 1/2 percentage point at this meeting.
Summary of Economic Projections (SEP):
https://www.federalreserve.gov/monetarypolicy/files/fomcprojtabl20250917.pdf
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 Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run. Uncertainty about the economic outlook remains elevated. The Committee is attentive to the risks to both sides of its dual mandate and judges that downside risks to employment have risen.
In support of its goals and in light of the shift in the balance of risks, 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. In considering additional adjustments to the target range for the federal funds rate, the Committee will carefully assess incoming data, the evolving outlook, and the balance of risks. The Committee will continue reducing its holdings of Treasury securities and agency debt and agency mortgage‑backed securities. The Committee is strongly committed to supporting maximum employment and returning inflation to its 2 percent objective.
In assessing the appropriate stance of monetary policy, the Committee will continue to monitor the implications of incoming information for the economic outlook. The Committee would be prepared to adjust the stance of monetary policy as appropriate if risks emerge that could impede the attainment of the Committee's goals. The Committee's assessments will take into account a wide range of information, including readings on labor market conditions, inflation pressures and inflation expectations, and financial and international developments.
Voting for the monetary policy action were Jerome H. Powell, Chair; John C. Williams, Vice Chair; Michael S. Barr; Michelle W. Bowman; Susan M. Collins; Lisa D. Cook; Austan D. Goolsbee; Philip N. Jefferson; Alberto G. Musalem; Jeffrey R. Schmid; and Christopher J. Waller. Voting against this action was Stephen I. Miran, who preferred to lower the target range for the federal funds rate by 1/2 percentage point at this meeting.
https://www.federalreserve.gov/monetarypolicy/files/fomcprojtabl20250917.pdf