Federal Reserve cuts interest rates for first time in 2025 as job growth slows
The Federal Reserve cut interest rates Sept. 17 for the first time in 2025, citing signs of a weakening labor market.
The Federal Reserve cut interest rates Sept. 17 for the first time this year, citing signs of a weakening labor market.
The Federal Open Market Committee lowered its benchmark rate by a quarter point to a range of 4 to 4.25 percent in the first reduction since December 2024.
Federal Reserve Chair Jerome Powell said the committee acted because “the unemployment rate 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,” he continued. “In support of our goals and in light of the shift in the balance of risks, today the Federal Open Market Committee decided to lower our policy interest rate by a quarter percentage point.”
Fed Chair Powell: "In support of our goals and in light of the shift in the balance of risks, today the Federal Open Market Committee decided to lower our policy interest rate by a quarter percentage point." #FOMC pic.twitter.com/HFoopj40DY
— CSPAN (@cspan) September 17, 2025
The vote was 11-1, with newly confirmed Federal Governor Stephen Miran, whom President Donald Trump selected in August and confirmed Sept. 15, dissenting in favor of a deeper half-cut, CNBC reported.
The move follows pressure from the Trump administration to ease rates. In a Sept. 15 Truth Social post, Trump said that Powell “MUST CUT INTEREST RATES, NOW, AND BIGGER THAN HE HAD IN MIND.”
