Overview

• The FOMC lowered the target range to 4.00%–4.25% in its first cut since December, citing slower hiring and a softer jobs picture.
• Officials’ projections point to two additional quarter-point reductions this year, leaving the funds rate near 3.6% by year-end 2025.
• Powell said labor-market risks drove the move and emphasized a cautious, data-dependent pace as inflation has recently accelerated and remains above 2%.
• Newly confirmed Governor Stephen Miran dissented in favor of a 50-basis-point cut, as the White House seeks greater sway at the Fed and moves to oust Governor Lisa Cook face legal pushback.
• Analysts expect limited near-term relief for mortgages and multifamily real estate because borrowing costs track longer-term Treasury yields more than the fed funds rate.