Overview

• The Federal Open Market Committee lowered the federal funds target to 4.00–4.25% in an 11–1 vote, the first cut since December.
• Fresh projections show a median year-end rate near 3.6%, implying up to two additional reductions, and a higher 2025 GDP growth forecast of 1.6%.
• Newly sworn-in governor Stephen Miran issued the sole dissent, favoring a larger 50-basis-point cut.
• A court order kept Governor Lisa Cook in place after President Trump sought her removal, intensifying scrutiny of the Fed’s independence.
• Analysts note the move was widely expected, so consumer borrowing costs—especially mortgage rates—may not decline sharply right away.