Particle.news
Download on the App Store
356 ARTICLES
·
1h ago

Fed Cuts Rates Again to 3.75%–4% as Labor Risks Rise

Powell says a December cut is not a foregone conclusion given scant data during the shutdown.

U.S. dollar banknotes are displayed in this illustration taken, February 14, 2022. REUTERS/Dado Ruvic/Illustration/File Photo
A general view of the Bank of England building in London, Britain, June 24, 2025. REUTERS/Carlos Jasso/File Photo
A U.S. flag hangs in front of a screen that broadcasts a news conference by U.S. Federal Reserve Chair Jerome Powell following the Fed rate announcement, on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., September 17, 2025. REUTERS/Brendan McDermid
Image

Overview

  • The FOMC lowered the federal funds rate by 25 basis points to a 3.75%–4.00% target range, marking a second consecutive reduction.
  • The vote was 10–2, with Stephen Miran favoring a 0.50-point cut and Kansas City Fed President Jeffrey Schmid preferring no change.
  • The policy statement cited slowing job gains and rising downside risks to employment, while inflation near 3% remains above the 2% goal.
  • With key reports delayed by the government shutdown, officials leaned on private data, a delayed CPI release, and Fed surveys to assess conditions.
  • The Fed also moved to shore up liquidity, planning to halt balance-sheet runoff on Dec. 1 and reinvest maturing mortgage-backed securities into Treasury bills.