Overview

• The FOMC lowered the federal funds target range by 25 basis points to 4.00%–4.25%, the first cut since December 2024 after a nine‑month pause.
• Projections point to roughly two additional 25‑basis‑point reductions in 2025, though Powell said no path is pre‑set.
• The vote was 11–1, with Trump‑backed governor Stephen I. Miran dissenting in favor of a 50‑basis‑point cut.
• The statement says inflation remains elevated and that downside risks to employment have increased, reaffirming the dual mandate.
• The Fed raised its 2025 GDP growth forecast to 1.6% and Powell emphasized the central bank’s independence despite political pressure.